October 15, 2010
Barry Ritholtz says that the market has shown resilience in recent months, and says Federal Reserve’s stimulative policies make it hard to bet against the market. “You can’t really be short a market where the Fed is saying we’re going to do whatever it takes to hold up every asset class,” Ritholtz tells Yahoo! TechTicker. Ritholtz says he has a little over half his portfolio in stocks, and is slowly adding to positions. He likes stocks from high-growth areas like Chile, Korea, and Brazil that trade as American Depository Receipts, as well as high-dividend plays in the telecom sector. He’s also looking at some contrarian-type picks in the homebuilder and technology arenas.
You sure do not want to fight the Fed, specially after the 1988 Reagan Executive Order 12631 by which one of the members of the “working group on financial markets”, colloquially known as the PPT (http://www.boyplunger.com/1074/ppt.html) is the head of the Federal Reserve. House always wins… or so far it did.