We’re continuing to hold large cash and other defensive positions after having sold numerous invested assets some time ago.  Additional sales are imminent as market deterioration continues.

Markets had been looking for help from the People’s Bank of China in the form of a weekend rate cut – that didn’t happen.  Overseas markets have continued their downward course and commodities were bid sharply lower on today’s open.

To be blunt, the markets and the global economy have become addicted to stimulus that has been largely ineffective at stabilizing inflation and creating global prosperity, which means that any additional stimulus (while welcome by most) appears unlikely.

NOTE: Our firms “traditional” portfolios (which represent a very small percentage of our clients’ assets) continue to hold full market exposure as they are not risk-managed” strategies.

We’ll have additional commentary and updates later in the week…