Now I am going short

Koalas have an instinct to avoid Bears

Well, yes, we are now selling shares, reducing risk through hedges maturing in December 2008, I do not think the 2008 stock market ends higher than current prices. These coverages we have taken in the last 5-6 weeks out. In fact in Koala Capital SICAV has open positions for about 4 weeks now in Banco Popular and Banco Sabadell and long on Bankinter (much less exposed to risk mortgage in Spain). We have reduced somewhat strong positions in shares linked to Energy to take advantage of high oil prices. Perhaps many of you will think, ” Oh boy, and now why Marc think no longer on the market after 3 months recommending buying and increasing the risk on the stock exchange in Koala Capital Sicav”. Well, this “calm chicha” – cowboy, the tranquility of the market and rising almost 2 months I do not like at all. Analyzing the American market, it can be seen as these increases in recent months are due solely to a momentary withdrawal of strong sales orders in recent months. New money, almost none comes into the market.

Not a surprise if “big hands” had their finger near the button “sell” . Each passing day the risk is greater. It could even continue like this tranquility for a few days more, maybe weeks, who knows; The trend in the medium term is already bearish and therefore is very dangerous hold or buy at these stages.