Tuesday, 3 November 2015

November outlook and thoughts on the current frenzy

I'm going to step out on the ledge here by stating that I have no dividend diplomats on watch as potential candidates for addition to my accounts.

After almost 2600 dow points off the August lows, in my opinion, chasing anything widely coveted is an exercise in inviting excess/unnecessary risk.

I continue to update my 52 week lows nightly, and the pendulum has certainly swung in terms of breadth between July and now. For the most part, new highs outweigh new lows daily. If I do find anything at all interesting, I continue to post my updated findings on the blog for further research.

I believe caution is warranted in initiating anything widely held or coveted, unless the valuation is compelling, and unfortunately, most valuations have rebounded or exceeded their May/June highs (look no further than Phillip Morris or Altria for examples of ridiculous valuations)

For the most part, I continue to sit on my hands and run screens/models.

I have added a couple of short term Fairfax Financial zero coupons to the accounts at yields in excess of 3% with durations less than 3 years.

Hoping everyone stays nimble and careful out there.

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