Disorder and Distribution

Rash policy actions in Europe, large currency interventions, ongoing equity market distribution. The SPX has now dipped into negative territory for the year. What we see looks like widespread nervousness about risk, across geographic lines as well as asset classes. Stocks are short term oversold and we could very well get a bounce at this point. I would look at it as an opportunity to review open positions.

The action in the markets suggests that there may be more snakes in the woodpile. Economic data in the US has, on balance, been improving, but unpleasant surprises abroad have been the trend of late. Rather than recap all the follies here, I will refer the reader to the blogroll at right; there is a good deal of timely reporting and insightful commentary in the blogosphere.

Touching on our macro theme of inflation vs. deflation, the deflationary winds seem to be blowing. For the investor, this remains a time to watch and wait.


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