Re: Other investment ideas
If you don’t like common stocks, there are some screaming bargains in the fixed-income arena. Munis, for instance (but I would stick to high-quality paper rather than chasing yield). Preferred stocks of many blue-chip companies are now yielding 11% (!)
Some closed-end funds are trading at fire-sale discounts to NAV. Two sister closed-end funds, HQH and HQL, deserve special mention as biotech vehicles. I think 98% of investors would do better owning shares of these funds than they would buying individual biotech names.
Being 100% in cash may work out well for you, but it’s an extreme view, IMO. By the time your indicators are telling you to get back in, the markets may have rallied 30-40%.
Moreover, as you once noted, betting that the world as we know it is coming to an end is not an attractive approach to investing because you lose even when you win!
p.s. I added to MNTA and IDIX today.
“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”
