February 21, 2014

Trading is better than investing

At this point of the year, we have witnessed an early-inning rout of consensus. As the lopsided market rout deepened [recently], a late-game recovery seems to be growing more unlikely.

That said, stocks now appear fairly priced, with reward and risk essentially in equilibrium. Reflecting this view, I am in a market-neutral position.

My investing mantra remains of the view that opportunistic trading will continue to trump investing. A further drop in equities towards fair market value would change my posture and lead me toward the search for investment opportunities.

via http://www.thestreet.com/story/12305464/2/kass-risk-happens-very-fast.html