Tuesday, August 24, 2010

Barry Ritholtz: Look Out Below?

According to today's post, hedge fund manager and author Barry Ritholtz says: 

We have been mostly cash since May 5th (as much as 100% then, 50% cash in June). We are now over 80% cash, and are looking for a move down towards 950 on the SPX. 

950 on the S&P 500 means a 20% drop from today's prices. Still, don't HPQ and some other tech names seem tempting at current (8/24/10) prices? Mr. Ritholtz seems to be betting that the Democrats--which control both the White House and Congress--will do nothing about a 20% stock market decline, even with elections arriving soon. 

More from Barry Ritholtz here

Disclosure: I own shares of HPQ.

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