TRUST EXUBERANCE

TRUST EXUBERANCE

I have to raise cash in order to buy more trusts. I sold SXC (2.61, rather reluctantly, I would like to buy back this position once I have some capital), QC(2.10, dido), MKX (2.24), SGF (6.97), XMC(6.3) and I purchased BFC (29), CF(9.2), CDI (11.05), and SFI (18.40). As a result of these purchases, I am currently over-weight in the Trust sector. If the market runs by 10%-15% as I expect, I shall take some profits by the end of this year to bring the weighting to neutral. While the purchases may be considered as trades, the sales make sense here as none of these names will likely participate to the run here. Trusts and dividend paying stocks should have the most leverage. I can always re-take these positions after New Year.

Having said that, there is an aura of exuberance in the air, and I might be a bit of too excited this morning to the point of panic. Remember, panic never makes money. Stay calm and count 100 backward before taking any actions.