I like to keep an open mind. When the data suggests getting more aggressive towards stocks, that’s what we’re going to do. When the data points a more defensive approach, then that’s what we’ll do too.
We’ve had a heck of a run in stocks since the summer, and now I think it’s time for a break, at least at the index level. Remember, regardless of overall market conditions there will still always be some stocks going up and some going down. In fact, I think Utilities see some outperformance here and I listed which stocks we want to own. So far they’re working.
Anyway, so why the new defensive position? Well, the things we said needed to happen for us to pull back are starting to happen. It’s really as simple as that.
Let’s get into it: [Read more…]