Gen-X Declines to 85 Cents From 100 on Jan 1

This Comment Is What I Saw

Simply lower is fine, that can be explained by higher volatility. Most of of the misplaced ideas around how financial markets work coincide with the times when the blue line exist. Why? People gloss over mistakes when their account statements are higher.

I don’t like trite sayings, but this one by Warren Buffet said it better than I:

Only when the tide goes out do you discover who’s been swimming naked.

Notably: you cannot do as Berkshire Hathaway can for a very long list of reasons, so to simply ‘mimic Warren Buffet’ isn’t practically possible.

Wednesday, Target and WalMart results removed the consumer from “safe” areas of the equity market. Again, it is NOT about an individual item, but the ripple effects on other items, that you may not believe are correlated. You might think that you are diversified, except when there is “forced selling” by large parties that determine the price on a short term basis.

Make no mistake: the short-term price-maker is the trader. And if large enough, it can create disruptions on those that believe in ‘buy and hold forever’ (which is wrongly formulated from the beginning).