19 Feb Coast to Coast
Since the December 19th letter I sent out, the markets have gone coast to coast – from severely oversold to slightly overbought. What a difference a little time can make. The stocks mentioned in that letter have also responded favorably – Berkshire Hathaway +5%, Apple +10%, J.P. Morgan +8%, Wells Fargo +6%, Citigroup +25%, Facebook +28%, Exxon +13%, Schlumberger +15%, Whirlpool +29% and FedEx +15%.
I would not be surprised to see the market take a breather for a while after such a strong rebound, but after that your guess is probably as good as mine. I don’t see any major portfolio changes other than a few sells if some of the more economically sensitive stocks keep moving higher and adding to the gold stocks on a pullback.
There is still a lot of political and economic uncertainty and the world has feasted on low interest rates and cheap debt, all of which will likely create more volatility going forward. As such, we will continue to maintain a more balanced approach between T-bills, stocks and gold, while trying to take advantage of any dislocation that may arise.
Thank you again for your business and trust,