mid summer blahs...

Where we're at:

DJIA 10,198.03
S&P 500 1,077.96
10-Yr T-Note 3.06%
s&p P/E: 19.62
VIX: 24.98

equity: 28
bond: 32
cash: 40

1 yr: 6.1%

A positive article appeared about TXT in our local paper this week. Scott Donnelly was discussing the investing TXT is doing in Bell and CSNA. We've heard similar discussions internally as well. Perhaps the cost cutting is turning into LT investing. Our lead was on vacation this week, so his boss got a chance to see how things run in his absence. I think some eye-opening occurred. We're starting to get our group a bit more involved in the design and modeling process before the specs are given to the offshore team. Hopefully, the group manager will see some value to front-end work and send more our way.

As I was out running this morning, I began to brainstorm ideas to act less like a 'pig' (using Cramer's terms) and more like a bull or a bear. The older I get, the less I like being slaughtered when Mr. Market decides he is overvalued and the roller coaster goes down. My first thought is when the S&P falls below its 12 month moving average, start buying. When its P/E reaches 25, start selling. I'll do some more research and see how much we'd forsake on the top-end and how much we'd keep on the low side. The bears are becoming more numerous and vocal. The contrarians think that is a good sign, I'm not so sure.