February 18, 2015

Investors are still bullish

Interest rates are backing a bit lower, gold is up, the price of crude oil continues to recover. 

Optimism, expressed in investor sentiment, is buoyant -- the residual of the strong price momentum recently experienced.

No doubt it is a truism these days that the bullish crowd has outsmarted the ursine remnants.

Fear and doubt have left Wall Street as investors party on.

Short sellers' concerns, while seemingly on reasonable grounds -- increased profit guide-downs, weakening domestic economic data points relative to expectations, slowing global economic growth, currency debasement, elevated P/E ratios (against a more normalized profit margin forecast) and a world dependent upon more "cow bell" -- are ever more endangered and are scoffed at as fugazis and Cassandra's predictions.

Yesterday I increased my bank sector exposure - adding to Citigroup (C) and establishing positions in five small regional bank stocks. 

I also added to my GLD long.

I am slightly longer - and, as mentioned yesterday... uncomfortably so. 

Originally published Feb 14 2015