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.

• 15 Oct, 2014

  Panic!

  Like Scary Nights at Universal Studios (where my daughter went this weekend), it really is scary out there. I Walked ...

• 1 Apr, 2015

  New Owners

  A few years, I was at a conference, standing in a buffet line. I must have become fixated on extracting the blueberries ...

• 24 Oct, 2014

  Im Not Dead!

  A great line from a great Monty Python movie, and another crisp cover from The Economist: ...