The past 2 months have been frustrating. Market up, market down, often sending contradictory messages and moving the opposite of what would be expected from news releases. So while it has still been a good year, I am tired of giving back gains in a market that changes dramatically each day.
As of now, I have positioned my IRA as follows:
~75% Cash
~8% Corporate Bonds (Ford and NOVA Chemicals)
~17% Large dividend companies and consumer non-discretionary.
Yes, a very bearish position that is trying to avoid volatility.
I exited my positions in financials, short treasuries and precious metals. On-going turmoil in Europe and a strengthening US dollar has not helped my portfolio. With little action from either the European Central Bank and the Federal Reserve, I have found myself on the wrong side of market movements.
So I turn my attention to 2012 and whether there are any longer-term "investable" trends or if volatility will make only the most talented trader wealthy. At this point my 6-12 month outlook is quite bearish and I have decided to "stop banging my head against the wall" in this volatile market, which feels much better.
Happy Holidays to everyone and May the Markets be Fortunate for You.
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