The Crowded Trade

The crowded trade is a stock market expression were everyone else is and there are no more buyers or sellers. The crowded trade right now is several positions...a) Gold..it is stale and it's related gold stocks are making new lows....everyone is selling their longs. b) Shorts are getting squeezed..there are record short positions outstanding. c) Cash...record cash levels around the world are trying to figure out what to do! d) Oil...the traders are not long it and believe the ultimate slowing of China and the USA will curtail demand.....The CROWDED TRADE IS DEAD right now..and don't forget all leveraged trades are paying interest everyday on borrowed money....so when it is wrong it is really wrong..

In portfolio management you always try to have the best investments in your holdings...you prune the weeds and let the flowers grow. You also have to plant the new seeds and stick some more mature new ideas in as well....like tending to a garden on your property....investments die and need to be replaced...wind can damage the forest and it needs cleaning and replanting....same thing with your money...most don't see this and many professional investors are severely handicapped by their corporate charters....this is hard on their customers holdings.

Great buys right now feel like some value (continuing) and new growth....INTC, PCL, GCH, IFN, AOB, TOL, FXI....hard to chase anything today, but that is what the "crowded traders" are being forced to do....chase...

Danny Boy seen here sitting on the sofa....is ready for a nap...he is not chasing, but he is gardening everyday.