Small Trade Executed

Late in the day yesterday we bought shares of Kinder Morgan (KMP) for most large accounts that did not already own it (large being defined as large enough where using mostly individual stocks with a few ETFs mixed in makes economic sense).

This year we've generally gone along for the ride in the rally but done so with a fair bit of cash. We increased equity exposure late in 2011and on into 2012 but still had some cash to be deployed. YTD there hadn't been much of a pull back but since April 2 there have been a lot of down days adding up to about a 4.3% drop. That is not a lot but it is more than has been for a while.

If this drop is about over for now then the timing will have been good and if the drop is the start of something more serious then a name like KMP with generally lower volatility and higher yield is a name we would want. Note that as we had a 50% decline in the SPX in 2008 and into early 2009 it is very unlikely that there would be such a large decline again so quickly. Our recovery has been anemic and plenty of other foreign markets have more compelling investment cases but I do not believe we are Japan.

We still have cash to deploy if market conditions dictate and of course we will always heed a warning from the 200 day moving average should it occur.