We are rarely full invested. We are now. There is a time to press your bet and this is it at least for the next few weeks. Even now we are not fully invested in equities but have a mixture of REITS, MLPs, beaten down closed in bond funds but we do have a lot of exposure to stocks. Everything is working.The Fund is having its best month of the year and we are only half into it. Our investors can check out our latest holdings as always at saxangle.com/portfolio-holdings-10-18-13/.
A word of caution, there does seem to be an air of irrational indifference in the sense that many commentators say you have to be in stocks because there is no where else to put your money. That’s a dangerous attitude. There is always someplace else and when stocks get owned for that reason alone, watch out. We are still finding many outstanding values in this low-interest rate market. For example there are many closed in bond fund trading at 7-8% interest below NAV. There are always stocks trading below their DCF values. Admittedly it’s been brutal shorting over valued and over hyped stocks. Valuation multiples of growth stocks have become absurd. That doesn’t mean you can’t get rich off them, it just means you can’t stay there forever.