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.

• 14 Nov, 2014

  Selected Fun Facts

  Some fun facts about this year (courtesy Michael Hartnett of Merrill Lynch):US equities (+14%) are ahead of European ...

• 20 Nov, 2014

  Pressure Building

  ÂYes, we all know the European economy is not growing: stagnant, sclerotic, etc. But this fact is not a crisis. Its ...

• 8 Jun, 2015

  June Gloom Will Fade

  1024"June gloom" is what you get when a warming land mass meets a cooler ocean: a layer of marine fog that the sun burns ...