Lightening up positions and taking profits

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By , January 30, 2013


In the face of soaring complacency and optimism I am lightening up some equity positions and taking profits. To the left we see the VIX at near lowest levels since just prior to the onset of the GFC. With markets challenging their all-time highs, I would feel more comfortable with an ascending VIX, not a descending one.

This tells me that confidence and complacency are high. I am also seeing a lot of scorn directed at those who seem to agree with me, combined with numerous rationalizations on why the markets have nowhere to go but up. For instance, some guy on twitter has deemed thisĀ  “crass contrarianism” as “silly”, and people are pretty eager to agree.

So it’s time for me to take some profits off the table, including RIM – thanks for the easiest double+ ever. I once again made my cardinal investing error and wished I had bought more. I also lightened up a few of my Euro indexes and took profits on Portugal Telecom.

I should also mention I sold some of my beloved Tucows. I had a small position in another trading account I decided to liquidate for a tidy gain but I am still long and strong a much larger position within my RRSPs and plan to keep adding there when the circumstances present themselves.

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