Spare Me a Dime, Fella?
Having done what I do for 40+ years, I have been here before. The wailing. The gnashing of teeth. The falling timbers of the global markets. Etcetera, etcetera and so forth, as the King of Siam said.
We have just lost 3-5% of the U S markets value. S&P 500 or NASDAQ, take your pick. What does this mean? We are back to September of last year. Will we see more wrack and ruin? Almost certainly? Are we ready to pick up the pieces? Most certainly.
When markets drop, they have certain characteristics. Steep. Immediate. Short lived. Ferocious. Painful. The top losers were the top gainers just recently. The response is global. Nearly everything declines (notably, not gold).
Please do yourself a favor. Ignore the market commentary – except from me. Few folks who do what we do have our time-tested experience. I clearly recall my first market crash in October 1987. 23% in just a few days. I can recall at least a dozen over severe declines.
I ask you to recall our response when these happen. Calm. Trust. Seek opportunities. Listen to Warren Buffet and Baron Rothschild. Buy when blood runs in the street. A few trickles today. We shall wait for the deluge to come. If we are wrong, we remain in cash and gold.
Minerals. Petrochemicals. Transportation. Real estate. Clearly visible financials with strong moats and significant balance sheets. When these irruptions occur, they happen very suddenly. Like a hurricane. Like an earthquake. Wait for the aftershocks. Allow the eye to pass over before venturing outside. Remain safe in cash.
Most importantly, call me with questions. About your financial goals. Your current personal financial situation. Your fear. But also, the gleam in your eye. The storm shall pass. You are reasonably safe for the time being.
As the Chinese expression I am so enamored of reads, ‘Waiting is…’.
Eat wisely
Sleep well
Love with Abandon!