It has been epic.
We have been bullish on stock indices since February. February … when every two bit hack from here to Kuala Lumpur broadcast their perma-bear biases to anyone that would give them a listening ear.
Yet stocks have cruised higher … and higher.
So now what?
Risk dumped a bit there over-night. And I can hedge everything heavily, given the right set of circumstances.
But I am not really ready to hedge anything at the moment, or to do so too quickly. In essence, I have a mountain of basis points, from which to make that decision. I have ‘breathing room’ or ‘banked mental capital’, and so I am not yet shedding my unhedged bullish stance …