I don’t like change. I’m not the type to paint the walls purple and I’m not the type to invest in unorthodox manners. What we are seeing here today, as well as last week, is consolidation following a strong move higher. The people who bought in last week are the “weak hands” and will be flushed out of the market at the first sign of a sell off. They are Johnny come latelys and do not have the composure to withstand a barrage of sell orders.
If you’re interested in buying now, do so in increments.
Aside from one or two names that are in strong down trends, I am content with my mixed bag of nuts, even though it’s losing me money. I own a lot of KMB, ESRX, OSG, PPC, ATML, DDD, JIVE and even NFLX. I am positioned to make a great deal of money, if the market trades up. This is not a portfolio built for defense. If it was, I’d get rid of everything but ESRX and KMB.
When confused about the direction of the market, try to remember recent history and have faith in our government officials to keep the quo status and to kick the can down the road. Believe it or not, that is the best course of action for people living in the now. If you’re interested in preserving the American economy past 2025, you might want to make some structural changes. But maybe they know something you don’t.
For example: perhaps they are aware of an alien army on its way from a distant galaxy, hell bent on enslaving us to mine gold for them. Maybe the global warming thing picks up some steam and wipes out civilization inside of the next 10 years. Or, maybe we’re past the tipping point of fiscal cancer and it’s only a matter of time before the world sinks into an irreversible great depression.
If that’s the case, we might as well drink some brandy, dressed as gentlemen in top hats, printing money, on the deck of the sinking USS Americana.