QQQ on June 15: 269.28
QQQ as of this writing: 303.84, which is 12.8% HIGHER IN A MONTH
Facebook on June 15: 154.25
Facebook now: 182..00, which is 17.9% HIGHER IN A MONTH
Wanna Understand What In The World Is Going On?
Put yourself in a portfolio manager’s shoes. You MAXIMUM HATE EVERYTHING. You have reason to do so, the Euro has crashed and the Yen, too. Interest rates move 10+ basis points A DAY. You, the portfolio manager, don’t have the background, you are focused on the numerator only (not everybody, calm down).
Stuff That ACTUALLY Matters Stabilize For Longer Than 5 Minutes
The Euro stops crashing, right at the 1.00 EUR/USD level.
And since that panic attack is over, no need to panic-buy bonds
…Bonds for dough moves, but within a much tighter range. It is NOT ONLY LEVEL, it is the VOLATILITY that is also important to observe.
Fox Force Five Enters
What if you were:
Underweight versus your peers or the market or your sector or whatever other measuring stick you use?
Ya got no choice….I didn’t simply post up that pic of Uma for aesthetics, I promise.
Broken Record Time
You know that everyone MAXIMUM HATES EVERYTHING? Is -18% on a portfolio basis (see prior posts about Vanguard & Blackrock targeted date funds)
The stuff that really matters has stabilized
And and and…you have paid attention to this lattice, shared with you about a bazillion times? That’s low, I realize.
Did You Adjust? Did You Need To?
Note that this is STILL not financial advice, nor is it a recommendation. There are a ton of other important pieces of information that would’ve been required, and even then, the outcome wouldn’t have been certain.
If you were wildly overweight stocks, hoping for a huge rally, then perhaps you sold, because you had no other choice. That can be rational.
If you were wildly underweight stocks, then perhaps you bought, because while you cannot predict the future, it might’ve been the place to add risky securities.
If your other components of your financial situation were correctly right-sized, then you could’ve done nothing, but wait. That wouldn’t have made it much fun over the past month, but patience could’ve been the best for you.
If you were right-sized from the beginning, then you aren’t the Baby Tomato.
Is it over? Did I say that the inning had changed? Still the top of the fifth, at most. The reason I used the baseball analogy? There is no definition of how long an inning lasts. I highly suspect that it is much longer than is discounted in financial markets prices, so there’s that.