The Risk Outweighs the Reward

Despite having a ravenous appetite for more gains, I’m inclined to wait out the Fed meetings, due to the potential risk of “taper.” We were down a whole 3% in August, marinating in the depths of squalor and barbarism. Now we’re up 4% in September, with commentators gleefully sashaying in and out of CNBC’s studios declaring “higher prices ahead.”

The momentum trade works until it doesn’t.

I like FSLR down here, especially with The PPT flagging oversold. However, historically, solars perform dreadfully in October. I’ve regained market supremacy in 2013, following a disappointing 2011 and 2012. The formalities of the Fed meetings are somewhat meaningless in the long term. We know the government cannot afford higher rates, being saddled with 16-17 trillion in debt. Rates will be low FOREVER or until the country dies. Knowing that makes worrying about dips superficial. You’re all jackasses, gay giraffes driving iced cream trucks.

Let the weak and financially disabled fritter their money away, betting on Fed day. If you’re up like me, there’s no reason to play along with the amateurs.

Here’s to the professionals.

Cheers!