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  • Keeping Up with the Lehman Credit Swaps Settlement [View article]
    Leadership will not supply the unknown information needed to make decisions.

    The irrationality of those who panic make a rational response, both emotionally and behaviorally, almost impossible.

    By definition there is no way to know what irrational people will do next. One must wait until the irrational have exhausted themselves: the hedges must liquid equities to buy themselves out of their calls, the mutual fund sellers must finish acting, and the government must determine a path most supportive of predictability. When things have calmed to that point we may start to put capital to work in pursuit of opportunity. Until that time, stand clear and wait - in cash.
    Oct 12 13:26 pm |Rating: 0 0
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