Strategy Lab: Up 13% since August 1st…

From my recent journal entry for MSN Strategy Lab (November 21, 2008)

In my office, my lead trader Kevin Hoffmann and I have been watching with horror the events of the past few days. Last week we saw the writing on the wall and correctly decided to pull all of our positions from this portfolio as there were many conflicting data points that were very worrisome. Fortunately, we kept a short position in our actively traded client portfolios as well. (See TDI Managed Growth Strategy.)

The real topper was the latest auto industry fiasco that threatened to rip apart the market, and that at the least provided enough angst that we are witnessing a capitulation that was long overdue.

Even as distasteful as it may be, Congress will surely crumble under the pressure of nations stunned and panicked by the knowledge that we are no longer safe. The hope is that it will be done with a plan of consequence.

The last six months has torn at the fabric of the financial system in such a way it will take years to recover. The real question now is how will that happen. It seems to be only logical that we need to get people back to work and that we need consumers who can afford to consume. That will take a massive governmental initiative.

Read the rest of the journal and what I am buying now HERE