Krypto is watching this market now as intently as she watches a herd of sheep. She's getting ready to deploy some cash. The model is close to giving her a re-allocation buy signal for US stocks. She sold a good amount of those at much higher prices and looks to re-buy soon. I think S&P around 1000 to 1011 will give a good signal.
I'm also questioning the size of holdings in TIPs now. Those are getting to ridiculously high prices. Krypto has targeted 10% of assets in TIPs, 2.5% in cash. She recenlty cut TIPs from 12.5% to 10%. I wonder if some more of the TIPs should go to cash, for eventual redeployment. Thinking ...
Stock prices are down in Europe - more fears.
Anecdotally, New England business seems improving. I saw another new private construction project in my little town's center. Permabears are likely soon to be caught short.
Today we get another look at unemployment claims. I expect nothing good. The jobs picture and economy cannot improve until the weekly new unemployment claims falls under 400,000, preferably to under 300,000 per week.
PS: 472,000 new jobless claims. There is no "recovery". Still slogging in the swamp. Here's 472,000 new "thank you" messages for Pelosi-Obama-Reid ... hmmm ... that acronym is POR - guess it fits their performance and the status of far too many people in America.
Word of the Day
"Marasmus" - noun [$10]
Marasmus means a wasting away of the body.
Sentence: The world economy is not suffering from marasmus; the productive assets and human capital are still there and simply need to be put to use by people with vision and will.