Another very busy week.
Following up on my earlier blog, I continue to seek value in stocks and tools. So, first to stocks: volatility has changed the very nature of our markets-price action with minimal volume over seven days. A tug of war between the bears and the bulls with trading within a range. But, few market leaders to provide any direction. So, the search for value continues. This week I looked at the two Hussman funds. Very interesting approach to protecting downside risk while still being able to participate in any upside potential. However, I'm remaining in the camp of keeping your powder dry.
Is deflation the real concern with the Fed? If it is, being in cash is the best play. Most commentators fear this scenario seemingly ignoring that productivity improves while prices fall. if you have cash, it buys more. If you have other assets, they depreciate.
This brings me to the search for additional tools at reasonable prices. The Delta mortiser sells close to $300 new. I find them on craigslist.org in excellent condition for about $185. Apparently, they are not selling. Today, I negotiated a price of $100. Now that is deflation!
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