Wednesday, June 10, 2009

If you don't know who the pigeon is....

The Dodo birds were out in force today; talking until they were blue in the face, pretending that they were still relevant. This time it was the cry of the ten year. 4%! Oh no! That will stop the economy in it's tracks!

Oh please, spare me. Nothing in this market is done in a vacuum!

The market is just exacting discipline on Treasury, Bernanke and this administration, and it is doing it with higher rates. So deal with it. The market isn't coming down here, because rates are going higher; it's just money shifting out of stocks and into bonds. And when big money does the shift, it doesn't do it in one day. Some don't finish in one year!

The hedge funds, which are the fast money, have just shifted money into stocks. Didn't anybody notice that Paulson & Co put a $100 million into CB Richard Ellis today? Didn't he put a billion in BAC a few weeks ago, and isn't he already up on that by $200 million? Soon the hedge funds will start spreading the good stories, until the slow money, the pension funds, decide to do some tactical allocation. And they'll be able to come to a tactical solution, after we've already had a 40% move. "Let's buy some stocks!" Is it any wonder why the market rallied after the bond market closed?

Maybe if these bears were familiar with the etymology of the word "dodo" they would understand why "they are squealing like a pig"--but I want to be a statesman, and spare the "Deliverance" analogy. So I'll just stick to the Dodo's closest cousin, that's still alive, the Victoria Crown Pigeon!

"Because if you don't know who the pigeon is, you're the pigeon!


Anonymous said...

i recently moved 80% of my 401k into our lone bond fund PIGSX...what do you think about this one?

palmoni said...

It's an ok Govt bond fund--since it's the only one!

Anonymous said...

do you recommend putting more back into the mutuals?