Thursday, June 29, 2006

Staying Put

But how are we going to afford that house in the countryside, Muck?

  • Wonderful Inc. called and offered me the job.  I said no.  Too much of a lifestyle change.  Yes, it would've been more money.  But they were asking me to put in a lot of time over an extended period.  It came to what do I value more, my time or money?  Well, both.  But time wins this one. 
  • OK, back to money.  The market zoom a zoom zoomed after the Fed.  I've been repeating myself often, but I think we're still in a bull market and I increased my portfolio to 100% long with tons of beta a few weeks ago.  I believe this is a correction; something that we often see in the summer and mid-term election years.  Which is why I had previously sold tech and high-beta stuff in April.  So where do we go from here?  I'm still long.  If we rally more and see a summer rally combined with lots of enthusiasm, I might be inclined to take some off the table and/or lower my beta in case we do come back down for a retest in the late summer or early fall.  But lets see if this bounce has some staying power.  It's quarter end, month end, and a holiday is coming up.  New money will pump into 401(k) plans over the next week and volume could be light with the holiday and vacations, so I'd guess the buyers would outnumber the sellers.  Maybe.  We'll see.
  • Bernanke indicated that the Fed would take a pause.  Good thing.   Hate to see them fighting an inflation demon in the closet that just isn't there.  More on Big Ben later...

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