Friday, March 13, 2009

Is it too early?

Euphoria. Last three days, bull rally across all indices. Banking stocks all up. Advise you to book profits now. Next week will be rocky again on profit taking.
This is the time markets are up and USD is weaker. Signs of cash moving out of T bills and bonds and into equity. More of this and USD will depreciate quickly. With interest rates so low and continuing so low, bonds should crash further. Perhaps 50% of portfolio locking in bonds for a 1-2 year term would be a good bet. 10% in cash and 40% in day/short terms trading in stocks could be a good strategy.

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