Today is the last day to officially own stocks in this, the first decade of the New Millennium.
Markets are uniformly trusted as Central Banks are assuring prices through asset buying. There has never been a time in market history that this has happened. It makes the Greenspan Put look like an AIG CDO circa 2006.
Equities are as lopsided as they have ever been and sentiment is at a bullish record. In just one earnings reporting season, the prevailing perception amongst market participants has shifted from “run for your life” to “everyone in the pool”. I think we had better get used to these types of swings as they could be with us for a long time considering sentiment will shift as a direct result of market action.
The headlines and talk of economic recovery is pervasive, just like last year. Remember?
Here, during these last trading hours of the decade/year/quarter/month, what is working is the commodity trade, plain and simple. This could continue until prices are are so high that nobody is left to buy. Then prices will crash. But we are not there yet.
There is a wicked equity and commodity correction that is imminent. Yet I cannot tell you the hour of its arrival. Plus, it will be bought by the “dips”. But watch out if the dip buyers cannot lift the market. When that happens, my strategy of raising stops and liquidating at our price targets will be proven correct. Of couse, my detractors will say “a broken clock is right once a day” or something along those lines. They were the same folks calling me a perma-bull just a few months ago.
Remember, most money managers are sheep in Brooks Brothers clothing. They will follow the mantra of what is working now. But the smart money is doing something else entirely.
HAPPY NEW YEAR!
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