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Hot Money Is the New Normal: Solaris Group’s Ghriskey

Fin - Breakout - US

Move it or lose it, buddy. That's an expression that is certainly relevant to the current market environment. Now, perhaps more than any time in recent history, investors' time horizons have become shorter than Mr. Roarke's sidekick on Fantasy Island, as traders go in and out and run hot and cold on ideas almost as fast as they're generated.

For investment pros like Tim Ghriskey, the CIO of Solaris Group, this is not necessarily a good development as much as it is one you have to accept, live with and work with. And so it goes for this long-term investor who is currently a dollar bull, an earnings rebound story player, an M&A believer and a commodity curmudgeon.

So what should you do? Listen to your heart, your head or your gut?

Ghriskey's method is to stitch together some big basic themes that he feels will ultimately be rewarded. Case in point, the economy will slowly continue to improve, the Fed will ultimately raise rates and the dollar will follow them higher.

Another theme: Corporations have record levels of cash, and they are using and will continue to use that cash via m&a to take out competitors in a market with record profits and reasonable valuations.

It all makes sense as long as you're able to take a longer-term view and not only stomach the volatility but embrace it and turn it into opportunity.

Let us know what you think. Write to us at Breakoutcrew@yahoo.com.