Mr. Market Casts His Vote

Mr. Market Casts His Vote

With the stock market falling over 300 points right now it’s pretty plain to see how Mr. Market feels about Mr. Obama’s win last night. For what it’s worth I think this is a pretty decent buying opportunity.

The market feels like it wants to shake out the weak hands before forming a short-term bottom that would set the stage for the typical holiday rally. There aren’t many bulls around; stocks are pretty fairly valued; Nasdaq and Russell 2000 are sitting pretty close to support at their 200-day moving averages; and any positive news regarding the fiscal cliff could be a boon to prices of risk assets.

All in all, I’m taking the other side of Mr. Market’s reaction today and turning cautiously bullish at current levels.

Jesse has been managing money for over 20 years. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Today he works with a select group of clients at Felder & Company, LLC in Bend, Oregon.