Despite the recent Barron's survey (from last weekend) which documented some 74% of institutional money managers as bullish, with 94% bullish on a 5-year time horizon, most of the friends and contacts who I speak to in the hedge fund universe are much more cautious. One such person said that he is expecting the market to be cut in half (and he is at one the biggest and most well-known funds) and has been buying puts accordingly. Anyway, my instincts lately have been the same, so I am going to continue to look to gain exposure on the short side.
At the same time...
I have been making some purchases of the very beaten down junior gold miners -- a couple of names that I have been following for years -- one which I am buying at 75% below the level when it first made it on my radar in 2011.
