While we’ve been nibbling at the market picking up small amounts of shares in some stocks, we didn’t do any this week. We expect some sort of market rally before we hit the next leg down and that’s what we are waiting for in this market.
Once the market rallies, we think it will head back down and that’s when we may pick up more shares of our defensive portfolio. What will determine our purchases will be the velocity of movements, the call and put option volume, news and general sentiment but we feel confident our portfolio will work well for the next few years.
On the other end of the spectrum, we continue to look for value priced rental properties and we are starting to see some price cuts for real estate in some markets. Again, it is too soon to jump in unless we see a value proposition that we can’t pass up.