During the first quarter we executed four trades - three buys and one sell

Good Morning,

Your author is suprised by the number of buys we implemented: but the opportunities were there and I took them. All investments were in companies currently receiving negative press, hence the value component.

Strong companies we wished we owned such as Tesco, Johnson & Johnson or Disney, are simply too expensivbe for us to consider at the present moment - just as we feel the S&P 500 is now 15 - 20% over valued.

It is a very difficult time for those that are concerned in asset allocation - as my day job requires, and who are restricted to purchase only the most liquid securities from the most profiled companies.

Bonds are not of interest, cash will be diluted, many stocks now assume too much growth for us to feel comfortable, most commodities are too wrapped up in the China story and property requires credit expansion to grow.

Personally, I am purchasing the equity of companies that seem undervalued. Marc Faber has stated frequently of late that he feels equities and gold are good investment startegies in the current environment: the former due to the explicit support of the US government should they fall aggressively, the latter because of this explicit support.

We remain heavily overweight in cash because we feel in the short term it is the least worst option. However, we are feverishily looking for good equity opportunities.