Friday, May 27, 2011

Yahoo Breakout: Simon says rotation into defensive stocks will continue

Simon is with Tactical Allocation Group.  Says they are taking money off the table in small to midcap growth area.  Holding more cash because of weaker economic growth. Best opportunities in emerging markets.  What happens after QE2?  Called it the Great Experiment - record amount of fiscal and monetary stimulus.  Weak recovery, is cautious.

Note: I'm back.


Update:

New debt ceiling? Ask David Walker, former US Controller General.

Will we go up to the deadline? Walker says he hopes not. Playing with a tactical nuclear weapon. [Scare talk.] Thinks they should make a deal soon and quit "dilly dallying along".

Debt limit is a confidence issue, he says. But not enough money to pay everybody, so who will get paid? Lots of fiscal irresponsibility, he says. [of course]



Update:
Walker is on a second segment. He has some interesting things to say. Don't miss it.

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