The true magnitude of risk - is either barely grasped (or dismissed as extreme unjustified concern), or rationales are floated; such as multiple expansion, when there's absolutely no reason to believe valuations 'as is' aren't terribly excessive.
Otherwise we're fine simply staying short and looking for lower price levels with interspersed rebounds. You may know that brokers just started charging .25% on Yen cash balances; or that UPS is braced for a near 4 Billion Dollar charge, depending how the Treasury's decision on Pension Benefits goes.
Late Saturday the U.S. placed China, Japan and Germany on a new FX (Foreign Exchanged) monitoring list. Details unknown.
At the Berkshire Hathaway gathering, where most pundits thought the late rally in the S&P Friday meant soothing hand-holding from Omaha; what they got was something else. Charlie Munger warned of dangers, such as even AmEx; while Buffett said hedge funds get unbelievable fees for bad results. Politically he's ok with whoever wins the Election.
Possibly we're not only well-positioned for more downside, after a down day and semi-consolidation we spoke of on the break of the old uptrend; but a lower immediate move is possible; trying to find a pause near Friday's earlier lows.
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