Thursday, August 25, 2011

All Eyes on Ben Bernanke on Friday

The market is eagerly looking forward to Ben Bernanke's comments in Jackson Hole on Friday. Every word will be sliced and diced. In particular, investors will be looking for comments on possible future quantitative easing programs; in other words will the printing press start up again if needed?

Warren Buffet announced today that he is going to inject $5 billion into Bank of America, a badly needed rescue. The move backstopped the financial sector this morning. With that unexpected news I closed our inverse positions in the financial sector. I probably should have held on a little longer as the initial bounce in the sector was faded later in the day.

On another note, our bond positions in the Flexible Income folio are bouncing back. Additionally, I did add a little to our extremely small Apple position when it backed off on the news that Steve Jobs is retiring as CEO. I also bought some McDonalds and a little Sturm and Rugar, a gun maker that can't make guns fast enough to keep on the shelf. Evidently people feel they need a gun in the new economy. Ha-Ha.

No comments:

Post a Comment