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.

• 22 Sep, 2017

  It's About Time

  Lost Time is never found again, advised Benjamin Franklin in Poor Richards Almanack. And Dante Alighieri observed, The ...

• 24 Jul, 2015

  Plunging

  Commodity prices are in free fall. The Bloomberg Commodity Price Index (5-year chart below) is off about 30% in the last ...

• 15 Oct, 2014

  MLPs

  Some historical data from Credit Suisse below: MLPs are off 14% this month, pretty bad. Subsequent performance (no ...