Whether you are invested in the stock market or not, tensions are high around America. Not chaos high, like I was blogging a few days ago, but pretty fre^#%%&ing high.
I spent yesterday running around Manhattan to meetings and got some very differing reactions to how to operate within the crisis. They were all fantastic
One way to ease your tension, something I have been harping on since January 2008, is to get very light equities. Fred Wilson was yelling ‘YOU ARE A BEAR’ at me last night at a Social Media dinner. I was busy booing the Verizon Representative as she introduced herself. Funny enough, when I talked with her after, she says she had been booed before.
I prefer easier battles. This market is too hard for 99 percent of investors. I don’t know how many more beatings the buyers need to take, but I think it will be many more.
Focus on the price action. What leadership we have is insanely narrow. Volume is always bigger on the downside. It’s fun watching the wave of leading traders over at Stocktwits catch some big wins, but it is also o.k. to watch and learn.
OPPORTUNITY is the name of the investing game and Stocktwits flow will create thousands of opportunities a month for years to come so there is no rush.
As to me being bearish…I don’t think so. I am bearish on the stock markets. Consider the stock markets as the surface of the ocean. The markets are being whipped about by the sea of political and financial chaos.
I don’t scuba dive, but imagine that 90 feet down, other than currents, the atmosphere would be much calmer. Sure you might be able to see the storms up above, but you could focus on the task at hand. There is much going on under the surface. Bankers and engineers laid off are busy getting together and discussing the new banks that will be the force in a few years.
It’s America and I will always be bullish on what’s happening below the surface. I just think that the storm at sea level is just too strong for now.