The market continues to act well, and all of our market timing indicators are now bullish. While the current pullback in the market could easily go further, we believe weakness is buyable. With that said, leadership in this market is still thin and hard to find -- most of the action has been from the “crisis stocks” like banks, brokers, insurance firms and the like. That’s fine for now, but we’re thinking that earnings season, which is just starting to get underway, will launch a few leaders higher. In the Model Portfolio, we still have lots of cash, and we’re actually selling one of our three holdings tonight (Randgold Resources) because of weakness. There are a couple of stocks we’re very keen on (they’re written about in this Letter), but we’re looking for better entry points so we don’t get shaken out during normal retreats. All told, we’ve been patient and defensive for a very long time, but we’re optimistic the market is going to present us all with many great opportunities in the weeks and months ahead. Stay tuned!
