General Stock Ideas

[gfp927z]

Bigworld, >> sitting on more cash to buy bargains <<


Yes, seems like a good idea. The market right now is hard to figure. After seeing the latest Catherine Fitts interview and that Jim Rickards article, I decided to scale back my stock allocation to 30%, and now have approx 45% in cash (had previously been ~ 20%). It might be an over-reaction, but I figure no sense getting my butt shot off. In addition to all the other factors, the price action in the broad indices seems really strange right now.

I don't know if Mnuchin's plan to end the bond backstop actually went into effect (article below), but the way the bond market has fallen off a cliff, it sure seems like something happened. The media is explaining the big surge in interest rates on growing expectations for a strengthening economy, but the timing of this massive collapse in bonds seems fishy -


>>> Mnuchin to End Key Fed Emergency Programs, Limiting Biden

NY Times

11-1920

The Treasury Department asked the Federal Reserve to return unused funds, downsizing the next secretary’s ability to restart the economic support.

https://www.nytimes.com/2020/11/19/business/economy/mnuchin-fed-emergency-programs.html

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