Do we believe this rally? No, we do not. We refuse to believe that “terror” [Paris attacks last week] is bullish. We refuse to believe that the deaths of 129 innocent people by madmen are materially supportive of stock prices. We refuse to accept the notion that the odds of a Fed tightening are reduced modestly and that that is massively supportive of stock valuations. We refuse to believe that common sense has been cast overboard entirely, and so neutral we are and neutral we shall be.
We are wise enough not to stand astride of the market and scream aloud that the market is wrong and that we are right, and so we’ll not be short, but neither shall we accept the notion that what happened in Paris on Friday is equity bullish.
Sometimes it is just best to hove to the sidelines and watch; we’ve hoved! We’re watching.