Marginal Happiness

Wednesday, November 30, 2005

Checking in





























I'm uncomfortable with recent market valuations. The SP500 has reported good earnings growth and solid profit margins, but I remain unconvinced this will continue into 2006. Is today a good time to go long? A lot of really really bright folks are sitting in cash, waiting for a financial accident. Plus we have a hawkish Fed, with a new chairman, ratcheting up the Funds rate. There's a little too much leverage floating around. I doubt that risk is being appropriately managed.

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