January 28, 2014

Cash position for now

I am materially in cash now, a position with which I feel comfortable and that allows me to trade opportunistically in the weeks ahead.

I am embracing panic and look at it as opportunity. I remain of the intermediate-term view that stocks will decline by between 5% and 15% in 2014 and that bonds will outperform stocks by a reasonably wide amount.

It is important to emphasize that regardless of view (mine is negative), one can be long short term with an intermediate-term negative view and/or short short term with an intermediate-term positive view.

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