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.