I’ve been able to take advantage of under performing hedge/mutual funds, who need to chase stocks into year end. I expressly outlined this strategy over a month ago, especially since most fund managers missed out on the recent run. Coming down the stretch, I intend to unwind many of my positions, booking profits along the way. If the market is set to sell off, it will come in earnest during the first week of January. Do you notice how giddy everyone is, banking coin like it was the dot com era, part II (anyone who says “deux” is a fucking putz)? Well, the better it feels now means the worse it will feel later. For the most part, speculation is not for the faint of heart. During the dot com era, I recall many brokers losing millions, long during brief periods of correction.
Looking past the next correction, it’s important to understand where we are in the cycle. Emphatically, I believe we will see record mergers and acquisitions in 2011. If you want to get in the game and do not know where to start, follow corporate raiders like Carl Icahn or LBO firms Blackstone or Fortress—names like MOTR, HAIN, TTWO or LORL.
At the present, my cash position is just 10%. For my personal aggressive account, I am fully leveraged, with distinction and style. My target cash level is 50-60% by early 2011.If you enjoy the content at iBankCoin, please follow us on Twitter