I don’t think “greed” is running rampant amongst investors and traders just now, but certainly there’s a lot of complacency out there. I just want you all to think about how many different geopolitical, economic, war-escalating, Black Swan and otherwise scary things can and will be impacting yours and the markets’ psychology, emotional state and, most importantly, asset prices.
Now, not during that next panic, is the time to be preparing for the next panic. That doesn’t mean we go short or even that we get too aggressive in hedging. Heck, the next move in the stock markets could be another 5% rally. I doubt it, but I’m not trying to game that next move right now anyway.
I just know that there’s a lot of value in being patient and not feeling like stocks are infallible when they’re at all-time highs. I know that reminding you not to feel like stocks have run away from you and that you won’t ever get another (two, five, or fifty) more pitches that really will have a great risk/reward set-up to them. Remember in 2016 when we bought stocks and/or call options at every panicky low?
Trade Alert: Doing some buying as the bulls panic January 20, 2016
Trade Alert: Panicky action, buying call options on two stocks February 5, 2016
Brexit brings buying opp June 23, 2016
Trade Alert: Today’s game plan June 24, 2016
Trade Alert: Two small tranches June 27, 2016