Markets Go Up, Markets Go Down. Its Important to Keep Perspective.
Equities start the day higher as we finally get a bounce out of the depths of market hell. I swear it’s been FOREVER since I wrote a Friday recap but I feel compelled to for a couple reasons. The first is that when storms rage it’s important to keep things in perspective. Markets go up, markets go down, some of the best days follow the worst days so what good is it to run around like a chicken with your head cut off? The second is that price action like we’ve seen this week emphasizes how important it is to create a durable plan that you can stick to even when it looks like the sky is falling. Josh Brown put it best last night “you know what conversations clients aren’t having with their advisors this week? Basis point fees.” Advisors earn their fees when they keep clients from making catastrophic decisions at the absolute worst time and that alone is worth MULTIPLES of what the client is paying. One bad decision because the market corrected 5% (which it does, on average, 3.5x a year) can potentially throw huge amounts of gains into the gutter. Look, nobody knows where the market is going to be today, tomorrow, a week from now, or a year from now. What we are trying to do (especially the wonderful advisors here at Baird) is make high probability decisions. Take a look at this chart which shows the probability of the market being negative on any given day. On a 1 day basis it’s a coin clip, but if you stretch your timeline the odds of the market being negative start to plummet. Chance of it being negative over 1 year? 26% 5 years? 12%. 30 years? ZERO. So as you sit there huddled with your advisor looking at the carnage in your stock account I want you to be thinking this: isn’t it great to have someone to talk to who, instead of saying “well my gut says this is almost over” instead says “here’s what statistics tell us, let’s look at the longer run and focus on where the sun nearly always shines” because the first way of thinking has zero value whatsoever, the second way of thinking has immense value. Oh and if you don’t have someone who does that, who uses a clear, logic based investment process, send me an email, I’ll help find you one of our best here at Baird.
After the open we went higher probably because we were oversold, but mostly because @CNBC had a “Markets in Turmoil” show last night. Now I love the good people at @CNBC, @carlquintanilla is one of my favorite follows on TWTR, but when they do these kinds of shows you know that sentiment is reaching max negativity. @charliebilello points out that after this show runs $SPX forward returns are all kinds of Irish green. But while we started the day to the upside it was inevitable that selling would hit the tape. There’s a popular maxim that says “markets don’t bottom on Fridays” and that reared its ugly head around noon ET. I guess sellers did not want to go gently into that good night my friends and by 1pm our gains were gone, poof, like my will to live walking around a Farmers market. A bunch of banks reported but they may as well have been screaming into the wind. JPM, WFC, C, and PNC all said various things then suffered from random price action because they are acting like macro economic indicators right now. Alright we need to shorten this section up because literally no one is reading it. Winners NFLX, ATVI, TTWO, V, and CRM. Losers PNC, KEY, FCX, GE, and F. By lunch we were hoping, praying, that the market would finally stabilize.
Which we did, kinda. Selling stopped after lunch and a small rally got us to 2,766 where we closed up 1.4% (and right on the 200day). That’s not bad, that’s a decent bounce, but technical damage is everywhere, we aren’t out of the woods yet. Allow me to end on a metaphor which should tie up my thoughts from the first paragraph. Everyone says that the market is all computers and that computers should do everything in our financial lives. But is that true? Should we allow them to manage us completely? Let’s look at another heavily automated industry to see if there’s a lesson to be had there. Airline pilots use the flight computer for nearly the entirety of a modern jet trip. They engage it right after takeoff, let it fly most of the way, then take back the controls right before landing. 98% of the time the computer handles the workload and everyone in the back smiles while eating tiny pretzels and drinking tomato juice. But when something goes wrong, when a light flickers a warning and the stewardess’ start looking around in abject terror you know what doesn’t handle the plane anymore? That’s right, the computer. And in that moment, when our need is the greatest, the salary of the pilots could be $20mm a year and they’d be worth every penny. People matter, they always will, fear and greed will always exist in markets and the help of a professional can save you from catastrophe. In that moment, they are worth everything to you. Final Score: Dow +1.1%, S&P500 +1.4%, Nasdaq +2.2%, Rus2k +0.09%
Volume was high. News Highlights:
- Succinct Summation of the Day’s Events: I’m gonna be honest, even though we bounced today it didn’t feel like full risk on. Hopefully the weekend settles people down.
- I have three links tonight and they are all worth reading so please, check them out. The first is JC, a brilliant technician, on what he sees now: “I was consistently bullish because the weight of the evidence pointed that way. This is no longer the case and our approach has had to adapt over the past week to a new environment.”
- Who benefits from a correction? “The swift market sell-off we’ve experienced this week is painful for anyone in the stock market. Investments outside the U.S. have done even worse. Now is a good time to remind yourself that there’s a bright side to this pain. To work through this dichotomy, here’s a list of those who would benefit the most from a continued stock market sell-off”
- Saying “don’t panic” isn’t really all that helpful right now: “The time to prepare for a bear market is during the bull market. After all, everyone is a comfortable genius during a bull market and most people turn into panicked fools during bear markets. And yes, while it’s precisely right to tell people not to panic during the downturn of a rollercoaster it’s even more important to make sure you’re not getting on a rollercoaster you aren’t comfortable with”
I wanted to end on a link showing what it felt like to buy stocks this week. This one will do fine.
Have a good night
Opportunity Always Abounds My Friends
Equities start the day lower as Hurricane Michael stalks the Florida panhandle. Wait…this thing is a category 4? Wow, that’s a monster. If you live anywhere near landfall please be safe because when Michael turns into a hurricane things get totally wrecked. I mean just ask my wife and kids, hurricane Michael hits Whitefish Bay WI a few times a year and the wreckage is everywhere. Speaking of wreckage, have you seen the market the past few days? We are working on the 5th down day in a row and people be wondering what’s up with all the red in my account? Well my friends you’ve come to the right place, not only can you learn how to make tasty football treats but you also get World Class free market commentary. Here’s what I think is happening: I think we are going thru one of these mini bear market/stealth corrections like we saw in late 2015, early 2016. Back then it was an energy implosion, right now it’s a housing/building materials/autos implosion driven by higher input costs, higher rates, tariffs, etc. I’ve seen people blame the move in yields but if this entire thing was just a “rates freakout” then why are Utilities massively outperforming? There is no planet where a rate sensitive sector outperforms AS RATES RISE. Tech being taken to the woodshed daily does makes sense: value has ticked up vs growth and in general people sell their big winners in a panic. You don’t get +60% a year in NFLX without a few -15% weeks here and there. How long could this little correction last? Well the one in late 2015 lasted about 7 months but that was a full on earnings recession, I don’t think we’re facing that right now. These kind of moves are also good for one thing: making a shopping list of all the names you wanted to own lower and saying “here’s my chance, lemme do some homework and see if I still like it”. Opportunity always abounds my friends, you just gotta find it.
After the open we saw more red than 60k Alabama fans watching the Shining while eating Twizzlers (that may have been a little forced, work with me here, it was ugly). It felt a bit like capitulation, at its peak 87% of NYSE volume was in declining shares, back in Feb that number hit 97%. However, it’s not like I spent my whole day selling stocks, I had plenty of buy orders too. If my thoughts in the first paragraph are correct then this is really just a scary rotation instead of a stock market peak but we’ll see, only history will tell that tale. Now look, I could list losers but it would take the rest of this blog so here’s a few for you to chew on: TIF, TWTR, RL, NFLX, FAST, and GOOS. Winners were nothing but quiet safe names. Inexpensive general merchandise (DLTR), Soup (CPB), Peanut Butter and Jelly (SJM), Cheerios (GIS), and Eggos (K). I freaking love Eggo waffles, if you don’t like Eggo waffles we legit cannot be friends. Back in the day I could eat 6 in one sitting, right now I think I could do 3 but I’d be on the struggle bus for the last one. By the way, if you’re bullish on the stock market, and you’re super smart/savvy, you do not wanna see Fastenal down this much, it’s a very important stock to keep your eyes on. By lunch we sat on 2,832, down a whopping 1.7%.
The afternoon got worse by the minute. Down, more down, sideways then even more down. It felt like we’d selloff every single second until the bell rang. We closed at 2,791 down over 3.3% and you can put a cap on that “the market has gone X days without a 1% selloff” stat because it’s OVER (ended at 74 days 10th longest streak ever h/t @ryandetrick). To be clear: I do not think the cycle peak for stocks is in, if this is the start of a correction then so be it but I think the bull market has gas left in its tank. Right now it’s dealing with a decline in certain sectors driven by late cycle factors and it’s coming to grips with it in an ugly way. But you know what? By one measure (7 day RSI) the S&P is the most oversold since 2012. I’m not saying it’s going to happen tomorrow but don’t be surprised by a vicious bounce. Whew….man…I gotta get out here…This is me, signing off
Final Score: Dow -2.8%, S&P500 -3.3%, Nasdaq -4.6%, Rus2k -2.8%.
- Succinct Summation of the Day’s events: Instead of “is this a pause in the rally” people are now asking “is this the start of a correction?” Ugly day, awful, nothing good to say about it.
- Great quote here from @michaelbatnick: Everybody wants to know when this movie ends, but as Matt Damon told Bill Simmons, “you don’t see the movie before you make it”. This is a great reminder that nobody can see the future. We know this bull market won’t go on forever, but we can’t know when it’s going to end.
We are going to skip to the end because I’m exhausted from watching stocks implode. I have two final links for you tonight
The first is a really boring elevator that OH MY GOD
The second….I don’t even understand what’s going on. Someone break this down for me
Have a good night
Much Ado About Nothing
Equities start the day lower as half the world is on holiday. What better day to make my triumphant return to writing then Columbus Day, where our bond brethren get to sleep in, and Canadian Thanksgiving when all 42 Canadians who trade stocks are out. By the way, do we still like Columbus? Where are we at on that? Anyway, if you are new to the recap welcome to my homebrewed creation that tries to take a light hearted look at markets. “Edu-tainment” is the goal here, if you want serious boring macro / micro commentary there’s lots of places to get it, here at the recap we talk stocks, jocks, economic data, pop culture, and we’re not afraid to make fun of analysts who say “great quarter guys” when a stock is down 25% pre mkt. So let’s catch up real quick shall we? It’s October, people get scared of October, but like my boy @ritholtz says “you shouldn’t be”. The worry du jour is interest rates, which are spiking faster than my heartrate after a 64oz prime rib. Should you be worried about that? Well, again, probably not. That being said, stocks aren’t particularly fond of how rapidly rates are rising and that’s an important distinction from the outright level of rates. So sure, the market is spooked, toss in Italy quaking (happens every single year, I’m not kidding) and China losing a trade war and that’s the current witches brew. Earnings start this week so let’s hope good ole fashioned fundamentals push the toxic cocktail out of our reach. Hey, did I mention I’m on Twitter? I’ve spent the last few months trying to grow my presence there so I could push my recap to a few thousand more people (if you are on this email distribution, you are one of 3,100!! How about that?). Would you kindly head on over and give me a follow? @bullandbaird (anyone ever play Bioshock? You’d get that reference if you did)
After the open we got our third rocky day in a row as all kinds of cross currents swamped the boat. Everyone is pointing to higher yields as scaring the stock market but you know what sectors outperformed today? Real Estate, Utilities, and Consumer Staples. So riddle me this Batman, why would those sectors do well if the market was deathly afraid of higher rates? Those are defensive sectors so the risk sleuth in me thinks today’s selloff was more about Italy contagion fears than anything else (Europe had a god awful session. Italy -2.4%, Spain -1.3%, UK -1.1%). But if people are selling stocks on Italy worries I have a message for them…Italy worries HAPPEN EVERY SINGLE YEAR. Ok, there, I feel better. Everything Tech / big winner / high valuation / momentum got crushed. To wit: $TTWO was down 2.8% today. Nobody is selling a video game maker because they are worried about higher mortgage rates in Muncie Indiana, they are selling stocks like TTWO, AMZN, MA, NFLX, etc because those are the big winners and big winners get chucked first when it’s risk off. As I mentioned before defensive names led the way but we also saw gains in DIS, WFC, CHK, and RRC. By lunch we sat on 2,872, down 0.45%, hoping this level would hold.
Which it did…thankfully. We closed at 2,884, down 0.03% as the market tries to come to grips with a host of late cycle worries. Now look, just because the 10year is at 3.23% and mortgage rates are near 5% doesn’t mean the bull market is over (read my earlier article). A lot of smart people I follow think the cycle has oomph left in it and I’m inclined to agree with them. When we hit 2,935 a few days ago the market was over-loved and over-believed. The spike in rates + random macro stuff was enough to cause people to hit the sell button. That’s it, nothing more. If you were to ask me what my view on the market was I’d bet we finish the year closer to 3k. Hang in there, things get rocky from time to time, nothing goes straight up. Final Score: Dow +15bps, S&P500 -4bps, Nasdaq -67bps, Rus2k -16bps.
Volume was high. News Highlights:
- Succinct Summation of the Day’s Events: Stocks are trying to find a near term bottom, worries include higher rates, Italy, China, and the Brewers winning the World Series. We held support again so people currently don’t fear the reaper. (cue up a cowbell).
- You know what the best selling luxury car in America is? a $TSLA Model 3
- Michael Santoli summarizes where we are: “The point being, there's an opportunity for the bears here, but there's a chance they're close to having inflicted about as much damage as they can for now”.
- 10 Common Investing Mistakes. #2 is my favorite: Investors behave as if the price we paid for a security somehow should be factored into how we view the investment going forward. “I think the most dangerous words in investing are “I’ll sell when I get back to even.” Anchoring to your purchase price is dangerous because most stocks are losers. Most stocks won’t be sold at a profit or even at a breakeven price. There is nothing wrong with taking a small loss, but big losses are hard to recover from financially and emotionally”.
- Galloway goes sentimental on us (and it’s awesome): Love received is comforting, love reciprocated is rewarding, and love given completely is eternal. You are immortal. Our role, our job as agents of the species, is to love someone unconditionally. It’s the secret sauce cementing the survival of homo sapiens. And to ensure we continue to enlist in this act, it’s also the most rewarding. To love someone completely is the ultimate accomplishment. It says to the universe you matter, you are an agent of survival, evolution, and life. You are still just a blink of an eye, but the blink matters.
- In a MILLION years would you ever buy this camera? Who at FB thought this was a good idea to launch right now? Facebook Inc. wants you to buy its new video chat devices for your home, complete with cameras that track movemen. This HAS to be one of the most tone deaf tech launches of all time.
- Chorizo Quesadillas for the next big Chicago Bears game? Don’t mind if I do!
- I mean come on, how much adrenaline do you need in your life? Racing thru a yellow light is enough for me
- Looks like a great place to sleep…if you’ve lost your mind
- Check out this traditional Russian Dance. Apparently they are doing it on their toes so they look like they are floating! Very cool
- This is an interesting question you might pose to yourself: Would you invest in a mutual fund if the Portfolio Manager had no skin in the game? “Half of the 15,000 mutual funds in the US are run by portfolio managers who don’t invest any personal monies into their products.”
We’ll end tonight with a fun loving, light hearted look at people falling over. That’s right, a good ole fashioned Fail video.
Have a good night
Equities start the day higher as we hit NEW…ALL…TIME…HIGHS. Man, I’ve been waiting a long time to type that sentence, so long that I forgot what it feels like. What exactly does it feel like? Well my friends imagine sitting on a beach with your toes in the sand, listening to Yacht Rock radio sippin on a cold beer. Mmmmm, that’s heaven right there (I’m gonna do a whole Yacht Rock themed recap one day). 213 days have passed, 147 trading days, since we last touched this lofty level in the S&P but guess what, that’s a good thing, what you just experienced was a correction thru time. That’s right, markets correct thru time or price, and you just lived thru the former. See all of this noise? That’s a reset of market expectations, a reset of sentiment and exactly what we needed after that blowoff top in January. What else is hitting new highs? How about Transports, small caps, an equal wtd Nasdaq, an equal wtd S&P, the Wilshire 5000, and my weight after drinking 500 white claws the past few weeks (who knew they are still 100 calories per can). I mean what’s not to like about the market right now: earnings growth has brought down valuations, all the trade war/tariff nonsense has kept bullish enthusiasm from getting out of hand, the equal weighted indices making news highs means it’s not just a few stocks, the most important piece of macro data (unemployment) is still making multi decade lows, and clients I speak with (both institutional and retail) aren’t acting like Brewster after his great uncle died (if you don’t get this reference we can’t be friends anymore). Longest bull market of all time? Who cares. All that matters is your behavior in it, that’s the one thing you can control.
After the open we boarded the good ship Take ‘em Up as the Dow soared past 26k, the Nadaq 8k, and the S&P to 2,899. Across the board breakouts and you know what the best part of all this is? There’s no resistance anymore, we are in clean air. Discretionary, Health Care, and Tech, all booming, if we could get Industrials and Financials to join the party then a whole lotta Bears are gonna be jumping off that mountain I just showed you. Let’s move on from all this chit chat and talk stocks. AMD rose another 5% today (+150% YTD) and if you wanna see what a morse code chart looks like check this one out. What’s the record for most consecutive gaps up? Unreal. Trump made some fresh hot deal with Mexico so all the auto stocks worked (F+ 3% GM +4.5%), banks did well because economic optimism is back baby (GS+3.5%, MS +3.5%), and FANG ripped because the market was open. Losers were UAA -4%, because, like GE, it can never really get itself going, and all of the following because they’ve been up so much lately: JWN -2.5% ADSK -1.8% KSS -2.5% and CMG -4.5%. By lunch we were quietly trading near the highs, 2,896 +0.75%. Do you even know how good Yacht Rock radio is? Are you onto this yet? If you haven’t been listening to the pearly tones of Bertie Higgins, Michael McDonald, and Christopher Cross as summer winds down then I don’t even know what to say. The canvas can do miracles.. (check my Spotify list here).
We spent the rest of the day trading sideways on the highs and if you’ve managed to avoid all the pitfalls that come with investing you are being rewarded with a white hot PnL. So what are we looking for now? What happens next? Well, again, we’d like to see Financials and Industrials catch up but we’d also like to see a retest of the old highs (around 2,870), have that hold, and then see the market put it definitively in the rear view mirror. We need to see how bullish resolve is at these lofty levels. Before we move on to the links I wanted to end this section with a brief snippet from Sen John McCain’s farewell letter. In it he says a great many things about his life and service to his country, but this one passage resonates:
"We are three-hundred-and-twenty-five million opinionated, vociferous individuals. We argue and compete and sometimes even vilify each other in our raucous public debates. But we have always had so much more in common with each other than in disagreement. If only we remember that and give each other the benefit of the presumption that we all love our country we will get through these challenging times. We will come through them stronger than before. We always do”.
Thank you for your service Senator and for reminding me that no matter what this great Nation will endure. When I sit down at my desk my only goal is to help our clients reach theirs and I do that regardless of who sits in the Oval office or what party controls the government. I, like my fellow citizens, will do everything in our power to add to the storied history of the United States of America.
Final Score: Dow +1%, S&P500 +0.7%, Nasdaq +0.9%, Rus2k +0.15%
- Succinct Summation of the Day’s Events: Last week of summer so it’s a bit slow, but we saw follow thru from Friday’s breakout. New All-time highs across the board.
- Great quote about Advisors here: “Clients respond to advisers who practice what Oechsli calls “the three Cs”: concise; conversational, and confident. When an adviser doesn’t talk too much, listens well, and radiates enthusiasm and warmth, clients come away with a lasting positive impression.”
- This “RISK RADAR” by Nomura is quite awesome. Well done guys
- Whether you like it or not, luck plays a huge part in your success: “This idea that both skill and luck play a role in nearly every outcome, including the careers of the most successful investors in the world, is a powerful one. Once you recognize that luck or chance, whatever the amount, is important makes you view the world in very different ways. You can no longer look at the cover of a business magazine featuring a Fortune 500 CEO or hot startup founder the same way again”.
- Good macro musings from D Schawel: Indeed it is plausible that the economic cycle lasts longer than most participants think will occur. Residential fixed investment is historically low, excesses from oil/shale were flushed out in late ‘15/early ’16, a healthy private sector surplus exists, and the consumer looks to be in a very strong position at the moment. Moreover, we haven’t seen such pro-cyclical fiscal stimulus like we’re seeing with the recent tax reform. From a psychological perspective, animal spirits are alive and well with some combination of greed and fear of missing out permeating the minds of investors from mom and pop to lagging hedge fund”
- As a history buff I love this necklace
- I mean could you even walk down this?
- Ok guys, football season is upon you, let’s make this on Saturday and this on Sunday
- I get a kick out of GSElevators “How to Dress like a real Man” articles. Especially this quote: “Leave a jacket on the back of your desk chair so people can never be 100% sure if you’ve left early for the day or are taking a long lunch”.
- One last article for all my advisors out there. Look, we all have the same information now, there’s no advantage to be had, but that’s not what sells anymore. Clients will always need help overcoming their inherent biases: “Whether we were using fires, drums, men, pigeons, horses, boats, wires, or satellites to send and receive information, people have always been the constant. While the technology has changed, the people haven’t. All investing comes back to arbitraging human nature. Why? Because it’s in your nature to sell during a panic. It’s in your nature to buy when everyone else is buying. It’s in your nature to make every behavioral mistake that exists out there”.
We’ll end tonight on something I’ve never been able to do. No, not skydiving, solving a rubiks cube. This guy does both.
Have a good night
The Dog Days Of Summer Drone On
Equities start the day higher as the dog days of summer drone on. I’m pretty sure the market has gone nowhere this week (it hasn’t, the past two days have had the smallest intraday range of the year) but that doesn’t change the fact that we are perilously close to new All Time Highs in the S&P. Are you excited? No? Well you should be because this train ain’t stopping for you to get on. The Russell 3000 has already made new highs, the Wilshire 5000 has made new highs, and this is all being done on relatively tame sentiment (AAII Bulls 36%, was 60% back in Jan). Earnings are nearly over and they were the best in 6 years…SIX. Not only that but the next two quarters are expected to have double digit EPS growth so it’s not even over. Hey…you know what all this earnings growth has done to the market? Brought down valuations. That’s right my friends, back to historical norms, so don’t @ me with your dumb CAPE nonsense. But Mike, what about all this Trump trade war / tariff nonsense, you told me it’s sitting on the market? Sure, it’s a thing, and I won’t try and minimize the potential impact of a policy mistake, but for now all it seems to be doing is putting a damper on bullish enthusiasm so I guess we can rate that as a good thing. Yep tweeps, the grind continues, and if it weren’t for Elon Musk this week would be a throwaway in market history. Elon Musk…man….I’ll tell you what…I actually love the guy. Now I’m not an analyst (we have a great one in TSLA) so I’m not making a call on his company, but I think Elon Musk is the kind of person we see rarely in history, the kind of genius maniac who shakes a pizza box or drinks Mouton Rothschild with enchiladas because he wants to do things differently. Check out this piece by Morgan Housel because it’s spot on. “People love the visionary genius side of Musk, but want it to come without the side that operates in his distorted I-don’t-care-about-your-customs version of reality. But I don’t think those two things can’t be separated. They’re the risk-reward tradeoffs of the same personality trait.”
After the open we went absolutely nowhere fast, in fact if I can get 100 words out of this section it would be a miracle of creative writing. The market hasn’t gone anywhere since the open on Tuesday and today was no different. Alright winners and losers let’s go (if you’re one of the CEOs I have on this blog I hope you always read this section, it’s fun to write). CTL gained 13% but it’s been falling for 7 years so take it easy, FLS added 6% on earnings and the stock is dangerously close to breaking a ton of sideways, MTCH +8% because Tinder is still red hot (I was young at the worst time), and WP soared 8.5% because Fintech is the future. The biggest losers were PRGO -10%, WBT -9%, TSLA -4.5% (back below the whole tweet thing), and ELF -37%. ELF Beauty…ever heard of this one? Eyes Lips and Face, also one of the best Christmas movies of all time. Maybe each segment was down 10%? Guys, the lip business sucks right now, maybe we focus on face instead. Meh, chart is a soup sandwich, maybe they need to use this stuff on their 8-K. By lunch we were still going nowhere.
The rest of the day…I mean come on you know what I’m going to say here. Look, it’s early August and people are trying to cram in those last second holidays. There’s no news and I think someone must’ve slapped the phone out of his hand because Musk hasn’t tweeted since the Tuesday thing. We closed at 2,854 down 15 bps with new all-time highs just a hair width away. A watched pot never boils people so go outside and hang with your friends, take your kids for ice cream, sit on a patio and eat burrata, walk barefoot thru the sand with your wife or husband or unicorn or whatever you love and after you do all that write my bosses and tell them I don’t suck.
Final Score: Dow -29bps, S&P500 -14bps, Nasdaq +4bps, Rus2k +24bps
- Succinct Summation of the Day’s events: Here, let me sum up market movement over the last 3 sessions
- This paragraph is amazing, advisors must read: “In a world where informational and analytical edges are fleeting, behavioral edges are the most important advantage available to us. Having a behavioral edge over other investors is far easier said than done. The reason this edge exists is because it’s uncomfortable, counter-intuitive, and sometimes downright painful. It means relentlessly following a financial plan and its corresponding investment portfolio, even when it feels wrong.”
- Batnick has a big ole piece that includes talk about buybacks, pensions, wages, wealth, etc. Click here
- I endorse this wholeheartedly. If this, plus the death of ties, continues to evolve I will celebrate millennials forever. “The rise of the laid-back approach to shaving, most popular among men under the age of 45, is causing some serious problems and strategic readjustments in the razor industry, CNN's Nathaniel Meyersohn reports. "Today, men are not judged negatively when they skip a shave — it is not considered lazy or disrespectful," Massimiliano Menozzi, the vice president of Gillette North America, told CNN.”
- Omg this might be my favorite link of the summer. This History Channel dives into the Battle of Hoth
- An oldie but a goodie where a trader learns a powerful lesson. Turns out this guy covered his short right before the 87 crash…..ouch……: “I concluded that my emotions were my worst enemy in the market and that listening to predictions from gurus and other prominent market forecasters was worse than useless, it was destructive. It also opened my eyes to how early reactions by the media to such momentous events are almost always spectacularly wrong. I still have many of the newspapers and Barron’s from that time, as well as news magazines, etc. re-reading them now shows how any early reaction is also primarily based upon emotions and utterly fails to put anything in correct context”
We’re going to end tonight with something I didn’t think possible. I had heard whispers of this on the wind but never thought I’d live to see the day that someone shot-gunned a bottled beer.
Have a good night