Off to speak at the CFA Institute Asset Allocation for Private Clients conference in Atlanta, Georgia. My topic: “When to hold 'em and when to fold 'em: Investment policy that real life people can stick.”
That is, so long as the snow storm here today doesn't cancel my flight Monday. Glad we finally got our leaves raked last week. Merry Christmas!
Ms. Park did an interview on BNN today at 1:35pm EST talking about recent market action and economic developments.
A link should be available after the show on the BNN web site.
After a year long down cycle and losses of more than 40%, world market trends turned tentatively positive at the end of October and suggested weeks or months of at least interim rally. Responding to this evidence, we took a small entry position in the broad market in Canada and the US(hedged). What happened next was that the trend broke down again this week and we sold.
Often a trade like that will stay in play for a few months. This time it broke down really fast.
The trouble with the financial news and economic data is that the market will turn long before the data. So if we were to just react to the news or how we or our clients feel about things, we would be of no value as a service. The rational approach is to measure and count the actual money flow and respond tactically to the evidence as it comes.
For now, we are content to remain out and watch carefully as the markets search for its next support level.
