Harry Rady Online – San Diego, CA

Appearing on CNBC ‘s Tuesday’s Task Force with Brian Belski of Oppenheimer & Co., Harry Rady, CEO of Rady Asset Management on June 23, 2009, stated his belief that if the U.S. government continues issueing debt to the tune of trillions of dollars, even if it is at the same time buying back some debt, that the equity market will continue to be vulnerable.

Harry Rady continued to explain that as these second and third tier companies (junk companies) continue to rally he sees excellent chances to short and build cash, perhaps as never before.

Quoted on “CNBC Stock Blog”, this past June 9, Harry Rady of Rady Assets commented that, “If Fed rates continue up much further, it will have a significant effect on the equity market.”

Harry Rady believes that there is still trouble brewing in the equities markets and it is still vulnerable. He also believes that there are still many opportunities to build cash and to short.

According to the article on the CNBC Stock Blog, Harry Rady of Rady Asset Management continues to be bearish despite the recent stock market rally. “I am more bearish than ever,” admits Rady, and he says he is continuing to “take chips off the table.”

Admitting that “It’s been an extraordinary rally,” Rady continued to explain that “even if we’re a little early, we’ve decided to take some chips off the table, raise cash and build some short positions.”

Rady’s feeling is that the recent market rally is a “head-fake” and that we should not expect consumers to suddenly go back to the “buying-spree” that they were participating in in the past.

“We’re approximately 70 percent in cash,” Rady said, describing his portfolio. “The cash position has been built mainly over the last week. As the rally continued, we’ve sold into the rally and put on more shorts.”

Two industries Rady does feel bullish about are the drug and biotechnology sectors.

As one of the sectors viewed in today’s economic climate as non-essential, the gaming industry is suffering sluggish sales and a shrinking market. WMS Industries, a company that manufactures slot machines, has paradoxically experienced a surge recently in its stock’s value, increasing company earnings, while becoming more efficient, and increasing its market share despite the general decline in the gaming market. There are some market analysts that predict that WMS will soon overtake International Game Technology as the industry’s leader.

Not all analysts agree, however. Harry Rady of Rady Asset Management believes that the stock has already absorbed the effect of WMS over performing.  According to Rady,

“A slip backwards in results could send the stock tumbling.”

The expectation of new slot machine purchases by the casino industry is declining, according to a UNS survey. It was found that only 22% of game managers are planning on ordering new equipment this coming year, compared to close to 50% last year.

In an appearance in the CNBC Video “Making Sense of the Markets” Harry Rady of Rady Asset Management, along with two other guests, give their analysis of recent market trends and advice on how to best product assets in the future economic uncertainty we are facing.