Seeking Alpha

ljsquid's  Instablog

ljsquid
Send Message
For the 15 years through 2012, Laurent has outperformed the market with 16% annual returns, compared to 5% for the market. Laurent's international career has stretched through US and Europe. He earned an MBA from Boston University and an MS in Engineering from RPI.
My company:
Longs, Shorts, and Mini-Skirts
  • Outlook For Stocks And Bonds 0 comments
    Jun 30, 2014 11:34 PM | about stocks: SPY, QQQX, QQQ, SPXU, SPXL, SPXS

    The government's Flow of Funds report confirmed what we already knew. In the first quarter, the percentage of their net worth that people have in equities rose 1% . This was manifested in the stock market's 1% advance. This allocation of 29% is near record highs, which is a large red flag of caution. People have never had so much of their money in stocks. This means we should be selectively selling. As QE gradually decreases, the government's support of the market will end.

    Meanwhile, the bond allocation of 6% also remained constant at a very low level, below the average of 7% and close to the low of 5.8%. Obviously, with these low interest rates, people aren't willing to lend their money. As a contrarian, I recommend selectively investing in bonds. However, US government bonds are less interesting than good corporate and foreign bonds (TGINX, rated "buy"). I believe interest rates will stay this low or fall even farther in the coming years.

    Disclosure: The author is short SPXL.

Back To ljsquid's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »

Latest Comments


Most Commented
Posts by Themes
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.