On a side note - Bank of Internet (BOFI) is now Axos Financial (AX). I don't currently own it but it's on my wish list for when the stuff hits the fan, someday in the (hopefully) not too distant future. I will put together my full wish list/watch list sometime here (for longer term stock investments).
The S&P is down a couple percent since I last said it may be safe for a short trade for the first time in awhile. Some are saying it's all about the long end of the bond market finally selling off causing yields to rise. The 10 year broke through to as high as 3.24%. The yield curve is actually wider at this point which subsequently takes us farther from a "recession is imminent" signal and we remain "economy is booming" or in other words "forget about a bear market"! The Nasdaq and small cap Russell did get hit hard here and may fall a couple more percent in the next week or two, but I am actually more fearful of a rip-your-face-off rebound now. Basically I'm a once bit, twice shy short seller, with his tail between his legs - but it's still just the first week of spooky October and anything can happen at this point. Fundamentally, the market is generally obscenely overvalued on many metrics and could snap like a twig. Also, the elections are just a month away now so we may see more profit taking on the lead up. But looking out a little further I can't imagine not having the seasonal last quarter rally, especially when all the indicators are showing systemic ebullience, like consumer confidence at all time highs and job market "best ever!". Of course those things could also be the "as good as it gets" signal so 6 months from now we may sing a different tune.
On a side note - Bank of Internet (BOFI) is now Axos Financial (AX). I don't currently own it but it's on my wish list for when the stuff hits the fan, someday in the (hopefully) not too distant future. I will put together my full wish list/watch list sometime here (for longer term stock investments). Comments are closed.
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Paul SaadSenior Manager, Paul Saad and Associates, LLC Archives
May 2020
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