This is the second article in a new series of posts that we are going to publish mid-month for InsideArbitrage Premium and InsideArbitrage Plus subscribers. These posts will contain updates related to the model portfolio (if any) or a new quick idea. This month we want to highlight some concerns we have about how stretched the market appears on several metrics and steps investors could take if the winds of change are upon us.
In early 2020, I was following the spread of the pandemic through Twitter (TWTR) and through conversations with investors on the other side of the globe who were already seeing mandatory shutdowns and the first-hand impact of the pandemic. It was fascinating to recently hear the former assistant director of the California Department of Public Health, Dr. Charity Dean, reflect on this on Barry Ritholz’s Masters in Business podcast, where she said the following about the COVID-19 pandemic,