Europe is imploding with Greek yields up to 35% — Portgual, Spain, etc… look very weak and the banks holding their paper are under pressure. My gut tells me to be ready for a pump job rally in the short term that will prove to be a selling opportunity.
While I am slightly bullish Florida residential real estate, I am resolutely bearish on the REIT sectors… The REITS are not a contrarian investment, but Florida real estate is somewhat more contrarian of a play.
I am sticking with my allocations, but investors should consider a stock replacement strategy on their index shorts and gold and silver paper holdings….
Bullion is always a good investment as long as Bernanke is in office…
So here is where we stand:
Equities: lowering short position to 30%
Metals: maintaining 30% exposure to the long side
Commodities: maintaining a 25-20% allocation to Rogers Index
Cash: 10% and waiting to buy cheap stocks
Equities Long: some cheap stocks can be purchased below liquidation value, but I expect better values in the future.