Stomach is uneasy. Every day. Feels like big boulders are rolling around behind the nearby hills, and I can't tell what is or isn't going to be the theme this year. The number of yammering heads proclaiming all is good and okay and time to dive in is scary.
Euroland collapse and bank run contagion are possible; hard to judge how probable. If things there roll over, we may see flight to safety *into* US paper. We might also see massed forced liquidation of leverage positions ala 2008.
I'm shifting my PTTRX holding over to a simple money market fund, for a bit. The risk of something serious seems high, and the reward of small dividends and a hope of flight to our glue factory horse just doesn't seem worth it at present. Will of course have to cross fingers that MMKT fund doesn't break buck, but in terms of my plan's available alternatives, I'm trapped.
The last time we were here in the S&P Mr. Bernanke was making his comment that "subprime is contained". Waaay to much complacency right now. CAT, FEDX numbers were awful, yet the market yawns...greed is back in vouge.