Mike:
Have written to you in the past, and my basic thesis at this point is that overall, it is difficult for the market to go down when we are awash in so much credit. The good news, is that it can not continue forever, the bad news is that a pop today will be much worse than if we had taken our medicine earlier on.
I am having difficulty deciding what part of the market is most overvalued, You have incredible evaluations assigned to some of the pharmaceuticals, consumers, (coke etc) , banks, brokerage houses and internet stocks . I am looking to establish some put positions but am unsure as to whether I should look at leaps in individuals or some of the indexes. In my opinion, the rout for the touts will come from higher interest rates. If higher interest rates are what ends the bull, than what areas would you look at for establishing put positions currently?
thanks
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