Risk OFF?

Despite the harsh events of the last 1.5 months - and yeah, I nearly blew a mental gasket myself - risk never went 'off'. 

The dumb money dumped into the rally, the news was relentlessly bad and most everybody ended Q2 feeling beat up.  But risk never went 'off'.

Among the signals I used to keep my white knuckles from the the sell button were the emerging market bond fund TEI (I bought it @ 14.82) and the junk bond fund JNK (I wouldn't use my worst enemy's money to buy this garbage). 

NFTRH194 noted an upside target for TEI, and JNK is now in blue sky.  Risk and liquidity are 'ON', dumb money is buying again and the market is setting up for a change I do believe.

Not the end of the world mind you, but in my opinion the dog days of summer could well get very uncomfortable.  Good stuff, because the markets stand to make sense again going forward and I like that.

http://www.biiwii.blogspot.com
http://www.biiwii.com/analysis.htm

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