Here’s an excerpt:
"Yesterday morning, I warned clients to use any lift to sell equities. CNBC reported on the call in the afternoon, and many readers have asked for a more detailed explanation.
Last week the market became so oversold that a corrective bounce was due. We saw that move begin in Monday’s rally. But don’t get too excited yet: I expect this bounce to last a week or so — two at most — before the markets start heading south again in a selloff that I expect to last until early summer, and bring the Dow down to the 8,800 to 9,000 level.
As such, I have been advising clients to use any lift as an opportunity to exit most of their long positions. In particular, I have been exhorting managers to sell cyclical, rate-sensitive and high-beta holdings.
I have aggressively sold equities, and I am now about 50% cash. I expect to be in even more cash by next week . . ."
Repositioning Before the Selloff
3/29/2005 2:15 PM EST
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.