Well, the faux jobs report, as some are calling it, has led to a stiff sell-off. I’m going to refrain from displaying any semblance of emotion and remind you that all sell-offs are opportunities, mind you, to buy back in. Nothing has changed and counterfeit money is still out there, waiting to bid up stocks.
At the moment, I am down about 1%. I don’t feel great about my positions, since most of them are designed to be trades. I have little conviction in most of them, which is fine on a short term basis. However, longer term, I can’t own a bunch of high-risk, high-beta, plays and expect to live comfortably without fear.
I’ve designed a fairly good system for investing, one that entails low risk, moderate reward. I keep tight leashes on most of my positions and book profits fast, unless the idea is something I feel passionate about, like former positions in MVIS, FTK, WNR, YELP etc. Every once in awhile a light bulb goes off and I know there is money to be made. Understand something, I don’t think money will be made, I know.
I’d be telling you tall tales if I said “I know stocks are going higher from here.” I’ve defaulted to a long only bias only due to recent history. Plainly, I have no fucking idea what the market will do next week. According to The PPT, we are overdue a 1-3% correction. Not a big deal.
In summary, don’t panic, this is normal. Eventually the market trades up, so go eat a few sandwiches, guzzle down some vintage wine, and unwind.