OK, so what am I normally - Bull, Bear or neutral?
Normally I am bullish and have been so for the past 2 years. Starting 1 month ago I changed to mild Bear.
Why? I think the upcoming move by the Fed, which is already baked into the markets, will not achieve anything but artificial bubbles in the equity, bond and commodity markets. Below is a very good article recently on what the Fed is doing and why it is ludicrous. This does not mean that I am out of the market, but I am not "all in". I have also started hedging equities. Concerning Fixed markets, I think the future best investment will be to short bonds, mainly in the 20 year maturity area. However I do not think it is time yet to start the shorting - maybe by year end depending upone the effect of the Fed QE2.
-- Dr. John Hussman, "Bernanke Leaps Into a Liquidity Trap"
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