Tom Petty's song Write Down was a favorite from before I was interested in the stock market.Say there ain't no use in pretending,
Your accounting gives you away,
Something on your books is feeling like I do,
We said all there is to say,
WRITE DOWN!
Go ahead and write it off,
WRITE DOWN!
Take me through the earnings season
WRITE DOWN!
Shareholders will understand,
WRITE DOWN!
It alright.
Ahem.
The day's problems appear to be stemming from two sectors that have been troubled, financials and tech.
I have been writing about being underweight financials until the yield curve normalizes. Tech is maybe a little more of a guess to be underweight because it is struggled for so many years but I believe there will be more problems for both before this cycle ends. In managing volatility of your portfolio the idea is not zero weight in either one but simply to be underweight.
4 comments:
Yes Tom Petty surely has some crank it up old classics. His greatest hits CD is nice. Did not know about this one, gonna have to check it out on itunes.
oh yeah. write down. its a keeper.
Nice view! I was similarly impressed by the market action today. Seems like a shakeout. What's your take, Roger? Or does baseball have your full attention right now?
just one eye on baseball.
the current dip is in the area of down a little. Down a lot is a bad bet the majority of the time. I think it is clear that after such a long bull market the chance of down a lot is much greater than it was two years ago.
I think the best posture is the adoption of an exit strategy and then the discpline to stick with it.
Guessing on the next 5%, I'll guess up, and being wrong with an opinion is not the problem that being wrong with a big bet is.
While I sort gave you a guess, the truth is I don't really frame it this way.
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