MARCH 9, 2020.
Saudis want to cut production but Russia won’t play. So the Saudis cut the price of their crude and that wave’s rocking equities. A million things move markets and some roil them. Either way we play our game plan. Today’s no different. Know that “Today’s the Plain Leading Toward Distant Peaks.”
not a strategy and it never will be. Seasoning never comes cheap. Choosing panic today means missing the opportunity to perform as a seasoned investor tomorrow, and there will be a tomorrow. It’ll be called Tuesday.
Today will weed out the weak. Were investing easy everyone would be doing it. Fear and uncertainty are part of the price we pay. The facts remain the same. You have to buy when the market is hated. But buy quality, buy small, use ever wider scales, and be choosy. This selling could very well go on for days. Remember that no bottom has materialized.
Markets bottom when the panic crescendos. Terror-ridden sellers exhaust their supply of merchandise to heave overboard. The only people left on the floor are the seasoned and calm. They’ve penciled in any panic for next month–maybe next month or never.
Today is a day to keep your hands mostly in your pockets. We’ve been picking at Alteryx for two weeks and we picked a tiny bit more this morning. We did so because after this morning we’re currently 15% down and that’s a wide scale and when AYX does come back it will be screaming. The S&P 500 as a whole is very over-sold.
This is a market where you let prices come to you. There’s a time when even the hard-core turn off the screen and laugh out loud about something completely different. It helps. Others, mostly us, enjoy hawking the action because the cutting edge is the cutting edge. We’re done buying today and unless we’re double digits down in something tomorrow, we won’t buy then either.
We sold our Bed Bath & Beyond. It has no where to go but down for now, and we were far too far down. Removing that cash from the table makes sense. We are now at 34.5% cash. We sold Ford as well, at a huge loss. We’ll share more on precisely why. As always good luck and good investing.