Fight The Madness

Every morning we are greeted by the same seemingly endless river of selling and blood. And every afternoon, the market fights back, plus some.

The terror of this is certainly infecting the minds of the weak, but you must be strong. I confess, even I become afraid when I see my stocks tipping, each and every day. Behind this charade, however, the path higher remains clear to me.

There are still companies worth buying. I will be truly afraid when I look for positions to purchase and come up, repeatedly, empty handed.

This is merely a changing of asset type, not the beginning of something more. The market is putting the old staples in tech and fast growing IPOs out of favor, turning their attention now to my preferred positions – energy and infrastructure.

I have sworn off hedging and short positions in this last cycle for a reason; it’s been a huge money loser. I have a few percent tied up in puts that will not adequately cover my losses should we get a severe correction, and am just fine with that.

We are not in for another 2008. An event of that magnitude occurs once every hundred years. Here and now, we are still recovering from a system wide shock, and retirees very much need a place to park their livelihoods. The system will continue to recovery, albeit slowly.

Have faith in that.