| The Market Sent Mixed Signals, Again. |
Greetings!
This week the major indexes once again scared the living daylights out of investors as the market appeard to tank despite very positive earnings reports from companies like Apple, Amazon, Baidu, and many others. Earnings Reports that effectively show that the American consumer is not dead, but has merely adjusted their buying habits.
To say that this market has been, and continues to be, dysfunctional, does very little to explain how the overall indexes like the S&P, the Nasdaq, and the Dow can be up over 30% since the March bottom, while most portfolios are showing single digit gains for the same time period. But the fact of the matter is that the mindset of investors is not such at this point in time where everyone believes the current uptrend is real. I believe that is about to change as we head into the final two months of 2009. With that change we should see increased volume buying, and with that, higher stock prices.
I believe we have navigated this market effectively so far as we have preserved principal and not lost ground, while showing moderate gains since the March lows. The current portfolio consists of positions that will fare extremely well when the volume buying I speak of kicks in.
As always, we are keenly watchful of events that may trigger a major downturn, and if so, will not hesitate to go to an all cash position. |
