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.

• 10 Sep, 2020

  Still Beach Reading

  It's still beach weather here in Southern California, so I have a few more suggestions for beach reading.Begin Again by ...

• 13 Aug, 2024

  Beach Reading

  Six new books for you, all fiction, all great. I hope you enjoy!The Sellout, Paul BeattyThis is possibly the most ...

• 31 Dec, 2015

  A Year-End Thought

  This week, my college basketball team visited southern California, and I was lucky enough to spend some time with them ...