Don't be the last fool!
So at the beginning of October the market was heading into "Bear" territory and I felt quite comfortable! It was what I have been expecting and it was confirmation of my investment thesis and clients were in defensive positions. I can understand a oversold rally, but really 108 to 125 on SPY? On what news people? Europe may print a boat load of Euro's to prop up failed bureaucracies?
So in today's rally I decided to do something I have not done since 2006 when my wife's employer adopted this retirement plan through John Hancock, I traded her account. She had seven stock funds mostly international and small mid caps, very aggressive allocation. I sold five of the seven stock funds and put the two largest in Pimco Total Return Bond Fund and the Pimco Global bond fund with the rest going into cash. (I know I cannot stand Bill Gross or Pimco, but it is the only bond fund choices in the plan)
As a said before, I understand a short covering rally, but I have concluded that someone is manufacturing this rally for a purpose. Beware this rally stands on a foundation of quicksand so be a seller and don't buy the hype.
So in today's rally I decided to do something I have not done since 2006 when my wife's employer adopted this retirement plan through John Hancock, I traded her account. She had seven stock funds mostly international and small mid caps, very aggressive allocation. I sold five of the seven stock funds and put the two largest in Pimco Total Return Bond Fund and the Pimco Global bond fund with the rest going into cash. (I know I cannot stand Bill Gross or Pimco, but it is the only bond fund choices in the plan)
As a said before, I understand a short covering rally, but I have concluded that someone is manufacturing this rally for a purpose. Beware this rally stands on a foundation of quicksand so be a seller and don't buy the hype.
Posted by Bradley Fluetsch at 10/24/2011 1:58 PM 
Categories: Economics, Adding Value
Tags: stock equity markets over bought rally low volume huge losses sell NOW
Categories: Economics, Adding Value
Tags: stock equity markets over bought rally low volume huge losses sell NOW
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