Irrational Exuberance – Redux!

We’ve been deluged in the past few weeks with emails about the market rally and the economic recovery. More so than when the economic toilet was flushing last Dec – March, and most people’s money was circling the drain. Back then, folks were asking us if they should sell their “buy and hold” portfolio, since they could no longer take the financial strain, and were unable to stomach the sleepless nights and emotional roller coaster of the market. At that time, we had been long and short several times from late ’07 through early ’09, but did so from the stance of avoiding the extreme market risk that we had forecast. In summary, we had been “leaning” short for many months, even though our strategy allowed us to take many long opportunities along the way. Continue reading