I assume that most of you aren’t particularly thrilled with the market these days. I too have been working hard to book profits – squeezing blood from stones.
We knew it was gonna get tricky. We knew about it for weeks leading up to these “final days” before the dreaded “sell in May and go away” either takes hold…..or throws market participants (including myself) for yet another loop. Only time will tell.
The usual correlations we reference (in order to make sense of the markets) are out the window – we know this. The latest stream of U.S data has been absolutely dreadful no matter how hard the media tries to find a positive spin – we know this as well. Global markets are enjoying the largest “money printing party” ever witnessed in the history of human existance as Central Banks around the globe do everything in their power to mask/support the illusion that “everything is gonna be fine” (or else – why would they be printing right?) – again…….this we know.
All said – one needs to consider their current investment goals. If trading is your thing then fine – you will “suit up ” again Monday morning and get back out on the field. You will do battle. You may survive or you may not, but as a trader you’ve got your short term vs long term goals in perspective and for the most part – tomorrow is just another day.
As an investor, I think things are much more difficult. You are compelled to “seek return” and likely “hate” seeing cash just sitting there – seemingly doing nothing for you. You need to be extremely careful as to not “risk too much”….. yet your near term investment goals “command” that you see a return. In all – you likely feel more pressure than the average “gun slinger” short term trader.
It’s a tough spot – no doubt.
I’m not in investment advisor, but I would suggest that investors just take a deep breath – taking stock in the fact that “cash” is a position too.
In times of question “capital preservation” needs to be the primary focus – and with summer upon us I find it very, very hard to imagine anyone will miss any kind of major “upside suprise”. It’s hard to sit on our hands I know – but discipline and patience goes a long way.
This reminds me very much so of a story my father once told me of a young bull and his father – standing on a hill.