Tuesday, September 21, 2010
What Now?
I have never been more unsure of where the market is going. I really don't have a clue. I'm 50% long, 50% cash right now, and looking to sell some of my small caps if the price is right. I can see this market going either way and thus I am not doing anything besides trying to get back to neutral. It's hard to sit on my hands (and on the opprotunity cost of the cash) but there is too much uncertainty behind the skewness of being long and short. What I mean is I could get my face ripped off either way in this market. I will either move to 75+% cash or start hedging my positions. I want to do this because regardless of the macro move in the market, October will probably be a down month, and I want to be able to grab a little alpha in Nov-Dec from the tax sellers.
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