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How the Market Works

Activity vs Achievement

Posted by kdadmin on April 29th, 2015.

Markets like these remind me of a quote by the late, great, basketball player and coach, John Wooden. He said, “Do not mistake activity with achievement.”

Look at all the rhetoric about the stock market these last two months, and what has happened? Absolutely nothing. The S&P500 is flat since we sold off our stock over weights on February 23rd, 2015. Have a look …

60 Days Later

Now, we could have done what other firms did during this time. We could have been buying and selling and buying and selling, making all kinds of noise, and racking up all kinds of trading expenses.

But, instead, we chose to sit quietly out and watch the foolishness from the sidelines. Making money in the market is not about making trades. It’s about buying appreciating assets. If an asset is not appreciating (going up), it won’t make you money. So, it’s better to be on the sidelines and save risk for a more productive day. Like during times of extreme fear. Then it’s time to Hunt the Black Swan

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