November 2011 COP Report 12/8/2011

Investment Gang

There certainly is nothing to get excited about in the latest COP report which is just a reflection of the market in the last several months. All of the momentum factors are very small or negative. Note that bonds are at the top along with the Dow (DIA). This is the characteristic of what people, in recent times, are calling a “risk-off” market. This means that while the Dow is not down this month investors are still hiding in the most conservative investments. I am for that – that’s where I am. I could not get much more risk off. This means that when the S&P was down 2.1% today I was only down 0.29%. Of course, if the S&P had gone up 3% today I probably would have been up the same lousy 0.3%. My point is, that I have never seen, and I am not aware of, any investment position or strategy that will produce a small downside and a large upside as the market fluctuates. Well --- except in a broker’s sales pitch.

I wish you all a very merry Christmas and prosperous new year and may the new year’s ferries bring you a new investment strategy with a big upside and a small down side.

Best, Mal