Michael Platt, the founder of the $30 billion
hedge fund, BlueCrest, said on Bloomberg,
“…most of the banks in Europe are insolvent and the
situation in the region is "completely unstable." He went on to say that all of his funds are
in short–term US and German treasuries.
Wow! That’s a conservative
position that shows he believes that collapse of the banks is coming. He said the big money to be made in a crisis
is late not early and this situation looks worse than 2008.
The WSJ
called last week’s European summit a “failure” in several different
articles. As we noted here, they didn’t
address the problem with the sovereign debt and further, some of the agreements
they made are already are being watered down in Italy.
Today, Thursday, the S&P 500 went up 0.3% to 1216. I was looking for a bigger bounce, but we’ll
take what we can get at this point.
The
NTSM system responded by moving back to BUY today, but a buy now just
means NTSM remains positive on the market. The important buy was on 6 October.
I
bought back into the stock market at S&P 500, 1155 on 7 Oct after the 6 Oct
NTSM buy signal. I remain 100% long in
the long term portfolio (100% stocks in the 401k.). (See the page “How to Use
the NTSM System” – the link is on the right side of this page).
I
am 90% long in the trading portfolio.
Just a reminder: 100% invested in stocks is way too much for most rational folks. Don’t do it unless you have a high tolerance for risk.
