People often assume that when I point out major risk I am seeing in markets that it must mean I'm super bearish and therefore not exposed to market movements.
Not true.
I like to buy good companies when I believe their prices are on sale. Once I own them, I rarely sell. I may add more shares at times, but rarely do I sell. So I ride the ups and the downs.
There are times I may hedge. There are times I may build larger than normal cash positions to be deployed when I believe more stocks are reasonably priced (like right now). But I'm never 100% cash --- which would eliminate completely my ability to participate in the market's upward trajectory and create negative tax implications.
While I don't see current prices as a great buying opportunity I am still long risk assets but maintain sufficient and growing cash levels that I can use to purchase shares the next time I personally see prices at bargain levels.
It is these nuances of portfolio management that I will begin sharing with Capital Notes readers sometime in the next 30 days or so. I'll be starting a portfolio for the specific purpose of publicly sharing all of the transactions and the ideas behind them. Look out for this in the near future.
Stay tuned!
PS: This chart does not appear bearish. For now the uptrend continues but most of what I’ve written over the past month still holds true. We did see a 5%+ decline after my warnings in July. But I think the larger decline won’t occur until these uptrends break.
I think Chris Macintosh makes sound points - there is a hidden bear market prevailing, https://capitalistexploits.at/bull-or-bear/