Mike Zigmont, author of the Zigmont Report, is a partner at New York-based Harvest Volatility Management, a hedge fund with over $10B AUM, offering volatility management solutions to its investor base worldwide. Mike has been publishing his daily newsletter (Monday-Friday) privately for the firm’s investors and his personal contacts in the investment business
since 2008, sending it daily shortly after the market close.
The opinions expressed below are my own and
do not necessarily represent those of Harvest Volatility Management, LLC.
Little trading. It doesn’t look like investors returned after last week’s pseudo-vacation. Capital flow was very light again, printing at 78% today. That’s comparable to the day after Christmas. Anyway, the investors that did act today, sold equities down a bit. Nothing too crazy but perhaps, after a weekend to digest Friday’s data, the verdict is that equities are a little too rich.
Morgan Stanley published a cautionary report on equities in general and reduced their suggested equity exposure. The crux of the report cautioned on slowing GDP. This report was published over the weekend. You can throw a few other reports from other firms in there too, cautioning on slowing earnings and the Fed, to get a flavor of what the Street was saying this morning.
You get the idea. Nonfarm payrolls got the research analysts working over the weekend and some cautionary reports resulted.
The bulk of investors are still quiet though so who knows if, as investors return to their computers, more selling ensues.