I am not sure what to make of the markets. Of course, everyone has been focused on the Bear Stearns story (see WSJ Page One article Wall Street Fears Bear Stearns Is Tip of an Iceberg subscription required). My hunch is that this imbroglio is much ado about nothing, though I could be completely wrong and this is the tip of the proverbial iceberg.
Although I am cautious about the markets overall—and have been for quite some time—I am net long. As part of the net long position, I hold precious metal stocks and oils. I think those assets should do well regardless of financial skirmishes.
With the summer doldrums on their way, I am inclined to be even more passive with regard to my investing than I am normally. I keep watching the oils and when they fall, I add to my positions. Aside from that small tinkering, the portfolio is on autopilot.
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