FWIW, my Schwab portfolio is just about 2% from where it was at the peak of the market after a nice day today. I’m heavily weighted towards DE, CAT, SLB, and BRK and a few tech and Int’l funds. Schwab just upgraded CAT today which was my only concern after their subpar results last qtr.

My dumb move was not to take action and buy puts on Moody’s. I noted last week that I was surprised there were not Congressional hearings into why the ratings agencies gave such high ratings to the junk CDO’s that Wall St created. Today Sen. Dodd called for those investigations. I’m kind of ambivalent. I know these guys messed up ad gave the ratings to gain business, but I also have exposure as BRK owns 18% of them. It will be interesting to hear Buffet’s take on this and see if he buys more on weakness over the coming months.

I’m convinced there will be a full point rate cut by the end of the year and I also think you’ll see Fannie’s conforming limit increased sharply.