Still Comfortably Hedged

Earnings expectations continue to decline slowly but it is too early to say for sure if this is merely a pause in growth or something more serious.  Given the current world economy, I suspect things are going to get worse.  First quarter earnings will begin to be reported this week and it will be important to listen to projections for clues as to the future.  My other indicators, valuation and sentiment, are both neutral and there is no reason to expect positive influences from either one.  I am maintaining a hedged portfolio and have done relatively well this year because my stock picks have been profitable.  This has been a difficult market environment because the average stock continues to perform poorly compared to the major averages.