The US Stock Market has been like watching grass grow. It’s a hot mess and I’m all for it. We turned Neutral towards US Stocks in March so watching both the bulls and the bears get whipped around is great theater from our cash heavy seats. Nothing I’ve seen in the past couple of weeks has changed my opinion on this environment. To the contrary, everything continues to suggest having huge cash positions and not trying to be too aggressive – long or short. Cash is king sometimes and neutral is a position too, don’t forget that.
Many of us have the ability to invest in other markets. For the few of you who cannot, I still think it’s a good learning experience and a valuable academic exercise to explore other markets. You might not be trading (or allowed to trade) foreign markets today, but I promise you that one day in the near future, buying stocks in India will be as seamless as buying Microsoft or Apple. For most of us, it already is. The world is getting smaller, not bigger. [Read more…]