My pal Josh has a fantastic post titled ‘Remember This Moment‘. PLEASE read it.
Obviously I am a huge fan of Josh because of his style of thinking. In 2010-2012, thousands of Stocktwits peeps were uber bullish as we saw breakout after breakout in software, technology, biotech and other industries. I believe many thousands of us on Stocktwits have ridden this bull together. In February 2012, Josh had this great post up titled ‘Get your Shit Together‘. Turns out you were not chasing the market even than. You were early.
When I sat with Brad Feld a month or so ago, we chatted about the state of the markets and I mentioned to him that the market felt late innings. He disagreed and said middle innings and I ended up agreeing with him and blogged about it. A month later feels like a year of gains yet again. The market has rocketed.
I am loving it of course, but the hair on my neck is rising. Every idea I have is working. Not just a little bit either. Old white men that own ‘TARP’ bank stocks are giddy. The financials, which were almost washed away in 2008, are breaking out with authority.
It’s so good right now that the island of Coronado approved the Lindzon’s to build a full bathroom in our garage. Turns out our original garage, which is very old, was built by someone with two long Cadillacs or horse carriages and parked them in front of each other. Thats means our garage is longer than any modern garage and has the length that predates the current zoning limitations. WE WIN! More square footage out of thin air in Coronado is a mini Powerball.
A certain neighbor (still triangulating the meanie who Max plans on torturing with loud teen music until college), let’s call him ZeroHedge for the sake of this blog post, turned us in to the city as we began construction. You do not mess with a woman and her home (note to neighbors). Turns out that rolling on us actually helped bring us the even better news from the city. It feels like my neighborhood enemies are short Tesla, Netflix and Priceline.
But I have digressed.
Let’s take a harder look at where we are because of that neck hair thing I mentioned earlier. Ari Wald, a great reader of the tape posted this a few days ago. It captures the chase pretty well:
In hindsight this tape was easy of course. I am winning, you are winning, but it’s a raging bull market.
I have sold things way to early, and I am way underinvested again in stocks. I will continue to pare down stocks like $GOOG that have run like hell and make mistakes like I did selling $TSLA in the 50’s and 60’s on the run to now $90. I will keep adding a few fresh breakouts like $EFII, $YELP $MELI and $MENT as I have outlined the last few weeks on the streams and share ones I am eyeballing. Here is this week’s Stocktwits 50 for you .
Last year I liked stocks a lot as Y Combinator start-up investing rounds hit $10 million valuations. Interestingly, there has been no start-up crash, just a ton more interesting ideas at really fair pricing, so back we dive in with our check book. One year later Tom, Chris and I (SocialLeverage) are investing rapidly in startups at $2-$4 million valuations once again. It is stocks now that look to be in silly mode.
This is just one of those rare moments where the opportunities are rich and thick even as chasing exists. My hunch continues to be the leverage from the social and people web is working it’s magic with the intoxicating mix of global money printing.
Of course it will end, but you should be focused on enjoying this investing moment in time. You earned it.