Main Thesis
The purpose of this article is to discuss my outlook for the broader equity market at current prices. As my readers are aware, I have been reluctant to add to equity positions of late, choosing instead to mostly increase my positions in hedges, such as gold, municipal bonds, and investment grade corporates. This strategy paid off last week, but equities have resumed their march higher since Monday. As a result, volatility has declined along with bearish options bets, telling me that investors are once again getting too complacent. While low interest rates and