The Obama Rally? The G7 Rally ? The McCain is Out Rally?

  • Posted by
  • on October 13th, 2008

I am dusting off my G7 action heroes and putting them up for sale on Ebay.

Friday was an intense day as I spent 90 percent of the market hours on a plane, not knowing which limit orders were to be filled. Deep down, I was hoping none. I was long enough and buying Google at $315, USO (oil) below $70, Nintendo in the $30′s, Goldman in the 70′s, Electronic Arts in he $26′s, Visa in the 40′s and more American Express in the low 20′s was getting me longer still, but still just 30 percent invested.

Had I been off the plane, the late day plunge would have forced some severe gut wrenching. I probably would not have taken on the 10 percent more I was talking about on the blog a day earlier.

I wake up this morning to some sort of relief. I am not sure if it last 2 minutes, 2 days or 2 months.

I do know that other than Oil, Goldman and I guess American Express and Russia, I love what I own and they should particpate hard in any rally. I own the strongest brands I can think of with fantastic global growth stories/opportunities and excellent balance sheets.

In hindsight, it is wrong to buy into panics, but it definitely made me feel alive. To trade actively through the worst market week in history, survive and bring down my average costs in stocks I bought 3-4 days early feels somewhat satisfying. I think there will be much mutual fund/retail selling throughout the rest of the year and volatility will reign supreme for the forseeable future. Since I want no part of this continued craziness, I will reduce exposure quickly into lifts.

The way I see Friday’s action, ANY one of my stocks that breaks the lows set intra-day Friday will be punted without thought.

I hope you all survived what was an amazing/frightening panic, but don’t confuse this Monday morning rally with an end to the panic. The shock waves will be felt for years.

The NEW winners are likely months away from showing themselves and for me to put 50-100 percent of my money to work, there will now need to be 100′s of stocks hitting all-time highs on a daily basis. The good news for me is I will be able to focus my time on the start-ups I have helped back the last few years in the meantime.

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

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