Skip to content

On our second leg down. Place buy orders LOW

Here’s the S&P over the last year.

It shows the big crash beginning in early October 2017 to the bounceback, beginning around Christmas 2017 to today.

My friend’s portfolio was down $2 million at its lowest. Now it’s down only $1 million.

My portfolio has suffered proportionally more because I believed the gloom and doom and sold more. Mostly near the bottom.

Now where? The economy is strong — viz. 300,000 new jobs created in December and below 4% unemployment.

But there have been earnings warnings from Macys, American Airlines, homebuilder Lennar and others. And the government remains shut down, hurting workers, real estate syndicators, air traffic and the flow of IPOs. The effects widen and worsen the longer it’s closed.

It’s hard to predict this. Some say we’re going to see a second leg down in stock prices. Next week earnings season begins. We should know more.

For now, put in some buy orders on your favorite stocks 15% to 20% below where they are now. Maybe you’ll get lucky and snag some bargains. Maybe Google at $1,000? Amazon at $1,500. Or Apple at $145?

Here’s the best example of why it pays NOT to panic and stay the course. Netflix over the past year:

Susan and I just finished binge-watching Bodyguard on Netflix. Super show.

Don’t do stupid

+ Get yourself a flu shot. the CDC says it’s another bad flu season, with 7.3 million people sick so far.

+ Stay at least 10 feet from anyone who’s coughing and looks sick.

+ Wash your hands regularly. And don’t touch your eyes.

You should read this New Yorker piece

This article is not positive or negative to Trump. Just explains in great detail what happened. Click here. 

Here is a wonderfully silly short video

Favorite recent New Yorker cartoons

Harry Newton, who’s having a great time learning from his investing mistakes. There have been many. So, lots of learning.