Trade

Sold RIO at the close today at $35.68. They got their 65% price increase from China. We've heard about "inflation" ten times a day for the last couple of weeks. We have oil, wheat, coffee, etc. at record highs. RIO's earnings are probably priced in. Even if they're not, I'd probably have to hold it until July or August, which I believe would be very foolish, given the current climate of market risk and volatility.

Another emergent trend I'm keeping my eye on is the draining of money from equity mutual funds. Barron's reports that withdrawals year-to-date have totaled $60-70B. I believe that this could be a result of 401(k) withdrawals. If consumers are so tapped out that they are selling off their retirement, that would be terrible news for worldwide equity markets.