Hopefully Pimco is just getting started with this and can bring some other differentiation besides the two TIPS funds. Obviously (to some readers) I'd like to see them do more with foreign bonds.
There were a lot of comments yesterday that I could not get to, so....
Early in the day I Tweeted (you know, on the Twitter, like the young people) about a comment from Blackswan Trading. The comment was about students in China laughing at Timothy Geithner when he talked about a strong dollar. To answer BillB these guys have nothing to do with Taleb. I have no idea who started using the term first but I get some good info from the one that is not Taleb in a daily email.
A reader asked what if anything I have done with bonds of late given my idea that the market is generally broken. The only thing to come due lately was the Norway paper which I rolled forward to 2011. This calendar year I have bought two short term corporate issues; one from a health care company and the other from a tech company both of which are highly rated.
A couple of comments came in about the 200 DMA which for now has been crossed. One reader seemed ticked I hadn't mentioned it yet. To him, I say chillax broseph. I mentioned in the comments the other day that I will be doing a little bit of buying this week and if we keep the 200 DMA today then I have a trade ready to go (probably in the last hour). I will detail the trade in Thursday's post assuming there is a trade.
As far as the other comment which was about what to do to re-equitize well that is a tough one. While I will have more tomorrow (again assuming I do the trade) it would seem to me one way to go is to buy into something that tends to be early cycle or buy something with a lot of beta to get some bang for the buck or buy something you are particularly underweight in or maybe just buy the market (broad based index fund) just to get the exposure.
For now I have the next trade figured (meaning for each account). I have the trade after that (if circumstance dictates) nailed down to two choices from the same sector and have a couple of vague ideas (well not that vague) for after that.
Another reader asked what I was going to do with my double short position. When I bought I had indicated I'd buy more after a 5% move in either direction. Well we've had that (actually a couple of points away) but at the same time the market has done up the 200 DMA has tanked. SPX 945 would have been below the 200 DMA from when I bought SDS but now not. I'm not in a hurry to sell what I have but adding more above the 200 DMA is unlikely for me.
That may draw a heckle or two but my goal is avoiding most of down a lot not successful scalping.
Something new for me; comments I made in an interview are being dissected at a site called Gold News.
Felix Salmon did a write up about Nassim Taleb that I missed in writing up my post yesterday. Apparently Felix has spoken to him quite a few times and so has a better handle than most. He said one thing in particular that stuck out which was;
Taleb is, as ever, annoyed that people are looking at things like GQ errors rather than at his bigger philosophical points
This is what I have been saying about him since I first stumbled across him a while back. That I understand his biggest possible macro is nice but I still need to read his stuff very slowly.