We decided we liked Sedacca when he started a September guest post at Investment Postcards from Cape Town with:
We’re so glad you could attend.
Come inside! Come inside!
There, behind a glass, is a real blade of grass,
be careful as you pass.
Move along! Move along!
Here's today's guest post at IPfCT:
This post is a guest contribution by Bennet Sedacca*, President of Atlantic Advisors Asset Management.
Long time students of the market will tell you that “the crowd is usually wrong at the extremes”. Judging by what I see, hear and read in the media, the current consensus is that stocks bottomed on November 20th-21st, an economic recovery will begin in the second half of 2009, corporate bonds are a buy, stocks are cheap and the stock market is now discounting all the bad news. This is surely a sign that the worst is likely behind us.
Even though I was looking for a low in the S&P 500 around 750 (it bottomed around 740 on November 21st only to close at 800 the same day), I continue to believe that was a low point, but not THE low point for this bear market. We were large buyers of Mortgage Backed Securities during the Wall Street de-leveraging and have been rewarded with handsome gains, although we began to take some profits on Friday where appropriate....MORE