Nowhere To Go But Down

June 01, 2007

Is it just me, or does every investment market in site look sky high - probably for the first time I can remember?  If I've got any tilt in my investing nature - it is as a contrarian. So all of this makes me very nervous.

Finally - we're starting to see pressure on one of those markets...not just in the US, but globally - and that's real estate.  People have been talking about a real estate collapse for years...almost the way the old-line value guys started talking about the internet insanity in about 1995.  Well maybe real estate is about to meet its 2000.

The data does not look favorable.

The question is - with the S&P 500 finally breaking it's all time high (and can the Nasdaq be far behind:-)) when is something going to give elsewhere.  EAFE: off the charts.  US large small mid value growth - booming.  Commodities & precious - are you kidding me?  EM - can you say vertigo?  Heck, even bonds are looking fresh these days.

It almost makes you want to become a hedge fund manager - in the very old-school sense fo the term.

Still - I've been through enough investment history to know that you just keep putting it in there and stick to the plan...because if you pull out, you usually look like a fool pretty quickly as the market outruns your sentiment, 2, 3, 4 years.  Asset allocation, buy and hold.  Steady as she goes...


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