Emotion in Motion
We don't normally feel compelled to discuss short-term market activity. However, once in a while a month comes along that is very different from most other months. This is one of those months. With the S&P 500 down over 12% for the month of August (as of 2:30PM on Friday, 8/19/11), and Europe's economic and banking system woes weighing on the markets again, here are our current thoughts on global markets and our current positioning.
OH, WHAT A FEELING! as were dancing on the (debt) ceiling
Most investors are risk-averse. They want to make a solid return, but they are far more emotionally influenced by losses, especially big losses. This is the emotion that rises to the surface during stressful times like this. After all, we are only about three years removed from the last major financial crisis, and Europe is putting up a good fight with the U.S. in the battle of who can implode first. If you are thinking enough already!, you have a lot of company. But are you doing anything about it? Here is what we have been doing all year, in anticipation of an eventual day of reckoning.