Second Mouse Gets the Cheese
Posted on Sunday, June 21st, 2020
Howard Marks. Stan Druckenmiller. David Tepper. Legend after investing legend is coming out of the wood work to explain how overvalued the market is. Markets don’t go down because they are overvalued. That’s a condition of the market that predates a fall – it doesn’t cause it. The legends’ comments tell us one thing. The intervention of the Federal Reserve caused them to miss the lows and they want in at cheaper prices. A selloff here would be welcomed by many.
Hedge funds and day traders are all in. The options expiration in June is always one of the largest. That had the effect of locking the market in a range. It now has the potential to get unlocked. More volatility is on the way especially in these very thin summer markets. Corporate buybacks are also going into a blackout period. That could help the bears and investing legends who are rooting for the return of volatility and lower prices.
Short one today – Father’s Day and all. It’s time to go celebrate with Diane and the kids. The second wave of this virus is on the way. I am not an epidemiologist or amateur magician. It just has that feel. People are starting to ignore all the guidelines and precautions. It is coming back folks. As our mentor Arthur Cashin is fond of saying – It’s the second mouse that gets the cheese.
Happy Father’s Day to all the dads out there especially my own. Stay safe.
I think we aspire less to foresee the future and more to be a great contingency planner… you can respond very fast to what’s happening because you thought through all the possibilities, – Lloyd Blankfein
A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. – Winston Churchill
To learn more about us and Blackthorn Asset Management LLC visit our website at www.BlackthornAsset.com .
Disclosure: This blog is informational and is not a recommendation to buy or sell anything. If you are thinking about investing consider the risk. Everyone’s financial situation is different. Consult your financial advisor.