Ring Time Ranks As Risk

SEPTEMBER 3, 2018. Market risk rolls on, every second you’re invested. All the fancy dancing in the world will not protect you from crushing losses. Think ’08. Diversification helps. But just like boxing, you’re either in the ring, or not. If you’re in win, don’t dance.
Owning five hundred stocks is hardly winning. Nor is it effective risk management. It’s hedging. It’s playing not to lose, while facing most of the same risk. You can’t dance and win at the same time. Again, you’re either in or not. So punch to win. Why not? Your ass is on the line either way. Do you truly want to brawl for a bag of quarters? Continue reading Ring Time Ranks As Risk

Investor Stress Test. Having Fun Yet?

FEBRUARY 10, 2018. Remember the side-lined money that finally came creeping back late last year? Trial by fire, flame-thrower really. New money floated in swarms to market homes, following endless empty years in the wilderness. Our market promptly exploded. One lever-jerk release of pent-up fury. All bore witness. Retail investors wanted some. What about now? Does “horror” capture the welcome received by returners? What now? Are you just in? Thinking about leaving?

This week ripped a gap in most portfolios. We sunk 6.4%. We trimmed , and cut, prior to the crash. We’ve only bought since then. What’d we sell in the run-up? What’s worth buying now? Making faces at the market. Continue reading Investor Stress Test. Having Fun Yet?