Markets and stock valuation thoughts

Markets getting smacked and high-beta is where the most damage is being done, of course. Energy and commodities smacked down again today too. Is it a bear market? The average stock is down much more than the broader indices which are being held up by a select few stocks that have held their own and are still up big from the 15,500 lows we saw at the bottom of the last mini-crash.

Is it time to get aggressive and buy? Nope, I don’t think so, not quite yet. One more whoosh down and I’ll likely start to add a few more names from my wish list along with adding to the longs.

It’s important to note that I’m not even trying to time the markets when I say: “One more whoosh down and I’ll likely start to add a few more names from my wish list along with adding to the longs.” Rather, the whoosh down will take down some of the stocks I already own and some stocks that I am considering buying such as QRVO, SIMO and a couple others to valuation levels that would make them almost too tempting to pass up. I might add them to the portfolio in a small dose soon anyway, so that it removes the pressure of trying to time/hope for another near-term market whoosh down that might or might not come anyway.

Overall, I’m still far from being overly long, not anywhere near as aggressively long as I was back in 2011/2012 when I used to call my stance “aggressively long.” As I noted the other day:

“I’m not nearly as wildly bullish about the stock market in 2015 as I was in 2011 when I wrote that and was loading up on tech stocks. That’s okay too. I don’t have to be wildly bullish or wildly bearish at any given moment. I can let my analysis drive my conclusions and let my playbook help me figure out what to own and why.”

And don’t forget to listen to the latest Cody Underground Podcast here.

Also, you can watch me record the next Cody Underground Podcast today on Periscope and Scutify Live, so be sure to follow me on Periscope and on Scutify if you’re on them.