The following MSN article by Jon Markman about the Royal Bank of Scotland’s Bob Janjuah (Chief Market Strategist) “speaks for itself.”  Read it.   Like Markman, we are hopeful, but we in no way rule out Janjuah’s analysis.

Well, we were right in our last post.  Gains were short-lived and we have now sold 4 of the 6 positions that were choppy and uncertain.  We sold 60 shares of FXI (China) @ $42.60; 70 shares IEV (Europe) @ $37.90; 50 shares JKE (US Large Growth) @ $53.38; and, 50 JKF (US Large Value) @ […]

Today we bought shares of EWZ (Brazil), 36 shares @$70.59; FXI (China), 60 shares @ $42.35; IEV (Europe), 70 shares @ $38.37; IYE (Energy), 77 shares @ $33.12; JKE (US Large Growth), 50 shares @ $54.29; and JKF (US Large Value), 50 shares @ $52.15.  Comment: We brought each from 1/2 allocation to their neutral allocation of 5% […]

Read the short exchange below.  It’s a quote taken from Greenspan’s testimony to Waxman followed by a brief Buffet quote that we should all heed and to commit to memory.  The most interesting sentences to us are:  “Now in his case, the model breaking contributed to (some say it caused) the most costly meltdown in history. […]

Tomorrow morning at the open, we will reduce the following asset classes to 1/2 their neutral position: Brazil, China, Emerging Markets, and Europe. We are watching the Gold, Energy, and US Large Growth asset classes as they have faltered as well.    

Just a quick update for the Purchasing Power Portfolio.  We are at 1/2 neutral allocation for 6 of our asset classes.  Tomorrow at the open, we will sell 5 additional asset classes to 1/2 neutral, so that 11 of 16 asset classes will be underweighted due to weakness.  Just as we have seen broad strength […]

Today we are cutting four asset classes back to 1/2 of their neutral allocation.  We sold 43 shares of IWM (Russell 2000 Index) @ $52.57; 111 shares of PIN (India) @ $20.18; 48 shares of VPL (Vanguard Pacific) @ $50.96; 182 shares of PBJ (Food) @ $13.90; and 49 shares of JKF (US Large Value) […]

Today we sold EEM; Emerging Markets (7.77 shares @ 41.39), IYE; Energy (12.11 shares @ 35.43), EWZ; Brazil (2.33 shares at 75.52), and DBB; Commodities (36.39 shares @ 20.20).  In all case we took take gains to bring each asset back to it’s neutral postion.  Each showed some recent weakness/slowing.   Japan remains the only asset class at […]

I just finished John Talbot’s “The 86 Biggest Lies on Wall Street.”  It’s concise and very good.  It’s a quick read and a good book to read piecemeal since each “lie” is it’s own chapter and usually only a page or two.  Mr. Talbot is a former investment banker at Goldman Sachs and a visiting scholar […]

As the physicist Neils Bohr said, “Prediction is difficult, especially about the future.”  Here’s an article from Forbes that was printed in May of this year — not too long ago, I would argue.  So how easy is it to predict the price movements of an asset?  Well, here are a few quotes if you don’t […]