PreMarks: 8.24.11

Stocks look to open slightly down to mixed although they have rallied from their ealier lows.

As a heads up, I reinvested  money yesterday after a client specific review of portfolios.  This was a tranche buy.  That is I put a specific amount of dollars to work in those accounts that I felt could reduce their cash assets and also put money to work in what I perceive to be bargain prices on a 12-18 month time horizon.  I have a bit more of this program to put back to work in the next few days.  When I am finished my cash positions on average will be 12-15% versus the 20-30% I had about a month ago. 

As I mentioned this was a client by client review and while there is some uniformity to what I purchased, no two accounts would look the same yesterday in regards to what was purchased for them.  Stocks could obviously go lower, although I take some current comfort from the fact that the support level we discussed yesterday seems to be holding.  However, I think the risk reward level right now favors the bulls in the longer term.  This is especially true with ETFs that are in many cases yielding much more than bonds right now. 

I will publish before Labor Day why I am becoming more bullish in the longer term {12-18 months} in a post to you.