Technically Speaking: Bulls Run As Liquidity Floods Market

We are using recent weaknesses to add to positions we took profits in recently, such as energy and financials. We will also add to beaten-up “growth” names that have strong earnings trajectories and strong fundamentals.

It should be evident that an honest assessment of uncertainty leads to better decisions.

The problem with “Eternal Bullishness” and “Willful Blindness” is that the failure to embrace uncertainty increases risk, and ultimately loss.

We must be able to recognize and be responsive to changes in underlying market dynamics. If they change for the worse, we must be aware of the portfolio model’s inherent risk. The reality is that we can’t control outcomes. The most we can do is influence the probability of specific outcomes.

Focusing on risk not only removes “willful blindness” from the process, but it is also essential to capital preservation and investment success over time.

In other words, “buy now,” just don’t forget to “sell” later.

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Carl Schwartz 1 month ago Member's comment

Yup!! Bull's run for exit is next!!