Opportunities Available In Fairly Priced Market

Even as markets wobble on the basis of global macro uncertainty, we do not have 2009 redux. During that tumultuous period, nearly all asset classes, save US Treasurys, lost ground regardless of fundamentals.  Now, however, many stocks are moving due to their specific situations, regardless of the broader market moves. Personally, I favor this environment over the former; while Warren Buffett may enjoy the feeling of being “an oversexed guy in a harem”, his analogy for having more opportunities than cash, I find the paradox of choice to be an uncomfortable situation, preferring to focus my energies on a few select opportunities.

As for other prospects on the watchlist, a few names stand out as warranting further investigation, especially in the energy industry. The recent BP oil spill has knocked many oil-related stocks down a peg or five, including those with little-to-no exposure to the Gulf of Mexico.

In any case, there is no hurry to act quickly on these opportunities. Market action is somewhat discouraging for bulls and I am inclined to believe stocks are more likely to break lower than make new highs. But again, the Enlightened American portfolio isn’t predicated on market action or technical analysis — we look for value regardless of where the market might be headed. Generally, however, stocks don’t look cheap from my viewpoint and I don’t see any need to rush out of our 40% cash position.

As always, YMMV.

[This post is excerpted from the latest Enlightened-American Premium watchlist update.]

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One Response to “Opportunities Available In Fairly Priced Market”

  1. Melisa Kury Says:

    You can definitely see your skills in the work you write. The world hopes for more passionate writers like you who are not afraid to say how they believe. Always go after your heart.

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