Although we must remain cautious and alert, investors are obliged to take what the market gives when it gives it to us. Sitting in cash awaiting Armageddon and/or closing your eyes with a buy-and-hold (buy-and-hope) approach will prove catastrophic for long-term financial plans. Our strategy of “picking up nickels and dimes in front of the steamroller,” which focuses on income and dividends, has been rewarding. In addition, our biased market neutral approach, which captures the dividends but hedges some of the risk, appears just right for today’s environment. Nevertheless, there will be a time in the near future when there will be a call for safety, so you must have an exit strategy.
Regards – Keith Springer