As I've noted in recent weeks, the overall combination of an overvalued, overbought, and overbullish market has historically been associated with stock market returns below Treasury bill yields, on average, even when recent price action has been generally constructive. Two weeks ago, I took profits on most of our speculative call options, though the Fund does hold a small further position on the sole basis of market action. I would expect to increase that toward about 2% of assets if the market clears its overbought or overbullish status without serious deterioration in market internals.
Source: Hussman Funds - Weekly Market Comment: November 27, 2006 - Why Warren Buffett Plays Bridge
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