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BLOATED

After four glorious months sitting at the stock market feed trough, feasting on just about every savory stock dish within reach, we are looking a little bloated. It’s been great fun, enjoying the spoils of our post-election 15% bounty in the indices. But we feel it’s time to put a fork in this feast, button up our pants, and push away from the table.

At Good Life we got our signal that this banquet was over on March 21st, when the major indices fell out of their chairs. That was our que to thank our lovely host and skedaddle. Since then they’ve just been rolling around on the floor, desperately looking for a Tums. They may keep rolling around between S&P 2,300 and 2,400 a while longer before they find their seat.

Don’t misunderstand us. We don’t believe the fat lady has stepped up to the mic on this eight year bull-run. Quite the contrary. Our indicators still point to record highs being reached later this year before we close the lid on one of the longest stock booms in history. We just think it’s time for a pause to clear the table on this latest fiesta. Time to open up some windows, let some fresh air in, maybe put away the leftovers, and get ready for the next fiesta.

We would encourage all of you who have been gorging yourselves on U.S. stocks the past few months to put down your fork and take a quick glance at your portfolio. See if you are a little bloated, if all the stocks have been pretty well picked over, and if there are some you need to shed. Whatever you do, don’t let one or two stocks give you food poisoning and spoil what has been a beautiful winter feast.

At Good Life we’ve been fasting for several weeks now, trim and ready to return to the next stock market banquet. We have our eyes on dishes we want to try when Wall Street once again rings the dinner bell, which for us will be a break through S&P 2,400. Until then, we will sit tight, nursing our SlimFast.