<<Ike have been dead wrong>> I agree, I am totally invested, would remain so and have added positions all through this sharp drop by money made on options trade. My strategy will work as time is on my side, I never bought more than what I could sustain and was able to live through this haircut.
The bears have to cover and I will see my levels back...my breakeven is now around 3278 some 500 points away ( from Oct this breakeven has come down from high of 3870), that I am sure will come back like 1328. This time is different, may be for very short term investors, those who can throw the whole portfolio out in 15 minutes and buy back in next 15, those who are short one minute and long the next. That is not my ability I am long and will take this pain and this selling.
I hope we hold on well, if one does not maintain huge leverage and does not play beyond one's means one would be alright..I have never before or now conceded that market fundamentals have changed, in my opinion 'it is a severe extension of a overreaction' but this economy is in great shape and the earnings are now far higher than 1998 levels where we now stand, the rev to price ratio with growth stands at a level that is going to explode, it may take a retest of 2200 but we are going to see our levels. Right now we are humbled, beaten and tired but we hold our positions and others have borrowed stock to cover, lets see who wins..the battle is lost like in July 1996 Oct 1997 1998 but the war is not yet over.. I hope that this pain ends. However like gains were no big deal to see through the pain is the art that market teached me hard way every year. This is a part of my learning strategy.
Every serious investor is going through this pain, other than CW of SI where everyone seems to be in cash the present fall has hurt people, it is the ability of a person to take the hit that distinguishes a weak hand from strong hand, that is the lesson I have repeated in last 4 years 100 times if that is lost it is a great regret..
fwiw |
