In a month where the S&P 500 has gained 5.6%, it is reasonable to ask the question about whether there will be a pullback.

I believe the issue at hand is that the public is under-invested.  Stocks represent reasonable value today,  PLUS the ability to grow if things start to improve.

Myself, I have fallen victim to expecting volatility - some down moves to go with all the up moves, but there is no reason we cannot keep going up for some time.  I am reminded of flipping a coin - what is the probability of getting 10 heads in a row?  Very low, but what is the probability of flipping heads the 10th time after nine in a row?  Still 50%.

I am proceeding cautiously here because I am trying to run my money like a hedge fund that is intolerant of losses.  My equity exposure is effectively ZERO.  This goes against my long term view that I should be at my benchmark weight, so it goes without saying that I am very uncomfortable here.

But, there is no use crying over spilt milk.  All we can do as investors is review the past mistakes and improve for the future.

Right now, I am looking to pare back high yield  exposure and replace with stocks.