Reversal

I’m interpreting the spike down last week and the strong rebound in the past few days as bullish. See the chart below from Friday’s close (courtesy of our friends at Merrill).

We have held our positions in our model portfolios, neither panicking during the deluge nor trying to catch the bottom of this short-term move. Remember that much of what happens hour-to-hour, day-to-day, week-to-week, even year-to-year, has (or should have) little practical impact on long-term investors. Let’s make sure we have the cash to pay the bills and cover reasonable contingencies; after that, we can be largely indifferent to the spasms of the markets.

• 19 Jul, 2022

  Beach Reading

  It is definitely beach weather, and I have a dozen recommendations for you. Happy reading! FictionDay for Night, ...

• 28 Aug, 2015

  Picking Up the Pace

  Lost amidst the market turmoil this week were a number of reports of a strengthening US economy. Consumer confidence ...

• 20 Dec, 2018

  Breathe

  Twenty-five hundred years, Siddhartha Gautama practiced a form of meditation that involved controlled breathing. Much ...