I don’t think any post I’ve written caused as big a kerfuffle as A Change In Tone, which was just a week ago, in the aftermath of the Yellen bear massacre. So now that so much time has passed, I thought I’d reflect a bit on where things stand and my present disposition.
At the moment, I am:
- Bullish on commodities (examples: DBC, USO)
- Bullish on precious metals (examples: GDX, GLD, SLV, GDXJ)
- Bearish (yeah, still………) on most stocks
- Cautiously bullish on a handful of carefully-selected stocks (example: WPZ)
It continues to be maddening – – absolutely maddening – – that honest-to-God bad economic keeps rolling in, yet the market keeps shrugging and marching higher (freakishly, yesterday’s welcome drop was pretty much out of nowhere and for no particular reason).
I will say, however, that taking a more balanced approach to the various choices in front of me has left me a lot less anxious, less dogmatic, and less hung up on seeing Janet dangling from a branch somewhere. Don’t get me wrong – – I’m still leaning heavily toward equities taking a meaningful hit (although a true bear market is, sadly, probably going to take much longer than we think to really take hold) but there are indeed some markets in which I can be enthusiastically long.