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.

• 12 Apr, 2019

  Inversion

  Say "inversion" to a Californian, and the most likely word association is layer. Its our topography that causes this ...

• 20 Jun, 2023

  Beach Reading

  Most of you know that I don't favor romance novels for reading on the beach (or anywhere else, for that matter, although ...

• 24 May, 2016

  Housing Has Legs

  Surprisingly strong housing numbers out this morning: new single-family homes rose 16.6% in April to an annual pace of ...