We haven’t posted in a while, because we wanted to let the market run. The Fed induced a low 10yr yield; investor attitude is “there is nowhere else go” and the S&P valuations are too high for our comfort.
Having no other option is not a fundamental, but an artificial reason to invest. We would be cautious with putting new money to work until a better entry point presents itself. We want to be clear that we are not calling for a correction, but we think the market is ahead of itself. Either the earnings catch up to the market or the market catches up to the earnings. We think the later.