Reversal

I’m interpreting the spike down last week and the strong rebound in the past few days as bullish. See the chart below from Friday’s close (courtesy of our friends at Merrill).

We have held our positions in our model portfolios, neither panicking during the deluge nor trying to catch the bottom of this short-term move. Remember that much of what happens hour-to-hour, day-to-day, week-to-week, even year-to-year, has (or should have) little practical impact on long-term investors. Let’s make sure we have the cash to pay the bills and cover reasonable contingencies; after that, we can be largely indifferent to the spasms of the markets.

• 16 Mar, 2015

  Rebalancings

  Apologies for slipping on the blogs, but I've been traveling around the continent, from Alaska to DC.One of the more ...

• 29 Jun, 2015

  Drama/Drachma

  Here we go again, as Ronald Reagan used to say. Asian equities off 2-3%, Europe down 3-4%, Treasuries rallying, gold up. ...

• 19 Nov, 2015

  Fairy Tales

  The technology bubble of the late 1990s is a distant memory for most investors, and an ignorance for the rest. But back ...