…Some people prefer short-term stability even when the outcome is long-term disaster. – Mish Shedlock
Mish’s full blog on the FED, Inflation, market manipulation and more is located at…
The FOMC lives in a fantasy world. The economy is not improving materially and deflationary pressures are rising as the bulk of the globe is in recession or worse. The problem is that the current proposed policy is an exercise in wishful thinking. While the Fed blames fiscal policy out of Washington; the reality is that monetary policy does not work in reducing real unemployment or interest rates. However, what monetary policy does do is promote asset bubbles that are dangerous; particularly when they are concentrated in riskiest of assets from stocks to junk bonds”. - Lance Roberts of Streettalk Live, September 19, 2013. Posted at dShort.com at…
Friday, the S&P finished down 0.7% to 1710 (rounded) at the close.
All indicators are now neutral.
MY INVESTED POSITION
I remain about 20% invested in stocks as of 5 March (S&P 500 -1540). The NTSM system sold at 1575 on 16 April. (This is just another reminder that I should follow the NTSM analysis and not act emotionally – I am under-performing my own system by about 2%!) I have no problems leaving 20% or 30% invested. If the market is cut in half (worst case) I’d only lose 10%-15% of my investments. It also hedges the bet if I am wrong since I will have some invested if the market goes up. No system is perfect.