Wednesday, July 29, 2009

Short XJO at the close

Just can't help myself. Like a lazy susan that lost its way, I'm back on that short XJO...


  1. Today's market is doing you no favours. I hope you're not too early again :-)

  2. Happy to build on the short... for the moment...

  3. Came across this today, which certainly backs up your view (from Chief Investment Officer at Evans & Partners)

    "Market trading ~16x forward earnings (Industrials not as stretched at ~14x). Will come a point where it is either too far ahead of reality (with respect to a broad based profit upswing) or, in the event that economic/profit conditions do improve rapidly, it will be exposed to the valuation drag from the surge in interest rates that would inevitably accompany such an environment. Have not reached that point yet, but another week or two at this pace…"