The anticipated speech from Ben Bernanke this morning reminded me of the Greenspan years. When we would all wait for his “comments” then after them we would all look at each other and say “what did he say”. I had déjà vu this morning.
If this market has found a bottom without Ben accelerating the printing press (that Governor Perry so eloquently alluded to recently), we might realize that Presidents do not control the economy and the Federal Reserve can’t either. What we may see (emphasis on MAY) is our basic principal; Free Markets Work.
The market is very oversold in every sector; except for gold which I consider an outlier due to the fact that gold prices are dictated by fear and greed not by any fundamental basis. Remember I do not attempt to predict, only observe and then take advantage of mispriced opportunities. This is probably what Buffet saw with his current investment in Bank of America. I am not Warren although I spend a lot of time analyzing his investment theory. Because of Warren Buffet I am now bathing instead of showering, that my friends might be the secret I have been missing. Where is my rubber ducky?
Now back to a more serious note. Your account statements will show the effects of the debacles of the last thirty days. However, we are daily running our analytics on your portfolios to make sure our risk profiles are still within our parameters. I have told many of you my job is to tell you about that bump in the runway instead of it being a surprise. The positive is that we have been able to allocate funds to numerous mispriced assets that I truly believe will greatly profit us in the very near future.
Thanks for reading and hope this helps.