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Cash is not king. Making short-term predictions is impossible. It’s time to slide back in. Here are the reasons.

It’s down day in stockmarkets today. It’s the end of a quarter and institutions will be re-balancing. What this means is that they’ll be selling some of their bonds which did well with in the first quarter and will be buying equities. Many institutions have a stated goal — so much % in bonds and so much % in equities. Usually equities do much better, but this quarter they didn’t. Hence the need for many institutions (like mutual funds) to buy equities.

How not to invest during a pandemic

Yesterday I ran a piece by James B. Stewart, a long-time financial writer with the New York Times.  The article was called  “How not to invest during a pandemic.

Stewart’s piece contained these paragraphs:

  This week I described my recent investing struggles to Frank Murtha, a managing partner of the consulting firm MarketPysch and an expert in behavioral finance. He said nothing I told him was unusual, even among seasoned investors.

  My reluctance to look at my portfolio was common, he said. “Watching yourself have less money is painful,” he said. “It’s not just that you’re poorer. You also feel ashamed, foolish, like you screwed up. One of the toughest things is to separate your money from your ego and identity.”

  He gave me credit for gathering the courage to face reality and then to buy. “Nothing relieves anxiety more than taking action,” he said. “You can take small actions that address the emotional need to do something without putting your finances at undue risk.”

  Stocks are one of the few assets that psychologically become harder to buy as they become cheaper. “Every decision to buy is met with negative reinforcement,” Mr. Murtha said. Even he missed the great buying opportunity in March 2009. “I was too scared,” he said.

  At least I didn’t commit what Mr. Murtha considers the most serious error, which is to sell into a steep decline. “That’s where people really get hurt,” he said. “Once you’re out, the emotional leverage works against you. Either the market drops further, which confirms your fear. Or it goes up, and you don’t want to buy after you just sold. Then it gets further and further away from you. People don’t realize how hard it is to get back in.”

All through last night night, I agonized: My cash is not king. King is being invested in equities. And despite the gloomy predictions about the upcoming 32% unemployment and “the second leg down” in the market, I should be more fully invested.

In fact, it’s insane to sell into a downdraft — no matter how bad your declining paper wealth makes you feel. (I felt really bad.) You’ll always sell at the bottom. Trust me. That’s Murphy’s Law.

Own good stocks. Dump bad ones — like retailers, airlines, energy companies and cruise lines (though fortunately I have never owned them.) Hold the good ones.

I will buy more stay-at-home stocks, like Zoom Video, Teladoc, DocuSign, Slack (WORK),  And the online shoppers Amazon and  Chewy. And the online entertainers — ROKU and Netflix.

I’m liking Shopify. My super-mart nephew, Dan Whitten, owns three pubs in Australia. He had to close them because of the virus. But he used Shopify to build an online drive-in/ delivery bottle  shop. It took him only a day last weekend to build his impressive site. Click here. He’s using the sales to keep as many of his people employed as he can. He’s really impressed with Shopify (SHOP). Remember Dan’s in Sydney, Australia. He can’t deliver to the U.S. His prices are in Australian dollars, which are worth much less than an American dollar. I don’t know where Shopify is — somewhere out there in the cloud.

I’m also nibbling at the virus pharmas, like Johnson and Johnson, Eli Lilly, and Gilead and maybe the very volatile Regeneron.

Praying on Stay-at-Homers

Thieves are preying on stay-at-homers, like you and me.

The standard weapon is phishing. They send you an email that looks legit. They owe you money. Call them.

Cal them. Give them personal financial information… And bingo, you’re screwed.

The best way of checking the legitimacy of an email is to look at the sending email address. If it looks weird, it is.

Be wary.

Do things that make home working less stressful.

I’m playing tennis every day. I also make “big” accomplishments — like changing light-bulbs and batteries, and writing this blog (which I enjoy).

Here’s a piece

10 Daily Habits That Are Drastically Improving My Life
These habits will help you be, think and do better.

The author instances stretching, intermittent fasting to meditation. You may find some ideas in his list. Click here.

You must watch this video

I mentioned it yesterday. You may have missed it. It arms you with weaponry against the virus. In turn, that makes you feel less freaked:

For the video, click here.  Remember to hit the . It’s on the bottom left.

Fauci Warns Trump That If Everyone in U.S. Dies It Could Affect His TV Ratings

WASHINGTON (The Borowitz Report)-In a conversation over the weekend that reportedly left the President “shaken,” Dr. Anthony Fauci warned Donald Trump that if everyone in the United States dies, it would adversely affect his television ratings.

Although Fauci was quick to add that the everyone-dying scenario was purely hypothetical, he stressed that, from a medical perspective, alive people were more likely than dead ones to watch television.

Finally, Yankee ingenuity.  A better toilet paper

If the link on the image doesn’t work, click here.

Watch it to the end. It’s very funny.

It should be spelled Tofu.

We have been eating Tofu.  It tastes better than its reputation.

Lands End makes great pajamas with pockets. They’re on sale. Click here.

See you tomorrow. — Harry Newton

 

  • Dman

    #adrenochrome

    Q

  • gerryb

    I would love to hear Harry’s response to this enlightening interview.
    The author of “The Price of Tomorrow,” argues that central banks are fighting an inevitably losing battle. In this interview with Max Wiethe, Booth makes the case that secular deflationary trends will be the ultimate undoing of monetary policy and technology is driving this deflation at an increasing rate.://www.realvision.com/shows/the-interview/videos/the-central-banks-losing-battle-with-deflation

  • Dman

    Go ahead Harry keep deleting my posts.

    Best of luck asshole

    Q

  • Dman

    800,000 children go missing in the United States every year.

    How is this possible?

    We are all going to pay in one way or another.

    Q

  • Dman

    #covfefe
    #adrenochrome
    #pedowood
    #savethechildren

    #Q

  • Dman

    Harry get to Central Park now……they have so many kids that need care immediately.

    Harry the time to step up is now.

    Evil everywhere.

  • Dman

    Harry get some friends together and get to the Central Park tent hospital immediately. They are rescuing the children.

    GO HELP THE CHILDREN NOW!!!!!!

    Q

  • Dman

    Harry ask your son to describe how Nike is big-time involved with child trafficking out of Oregon.

    ……tip of the iceberg

  • Dman

    covfefe……..?

    co = corona
    v = virus
    fe = iron
    fe = ferretin

    woormwood only makes it worse. adrenochrome pedofiles are going to be dying……..or suiciding.

    Enjoy The Show
    Q

    by the way…….Trump wins again.

  • Dman

    Harry get over to Central Park and help those kids.

    ……you can delete my posts but you know you can’t delete the truth.

    Q

  • Dman

    #adrenochrome
    #pizzagate
    #childtrafficking
    #adrenochromewithdrawls
    #pedowood

    Run Forest Run!!!!!!

    covfefe
    Q

  • Dman

    Harry I sure hope Nike has nothing to do with the tremendous amount of child trafficking going on in Oregon. Ask your son Big Mike.

    Harry tell your readers what the “tent hospital” in Central Park is actually being used for. I’m sure by now you know it’s not the Covid-19 virus that those “kids” are suffering from. Are you hearing that a lot of those kids are deformed?……they are.

    Harry…Do you remember Trump tweeting out the word “Covfefe” two years ago?

    The Great Awakening
    Trust The Plan
    WWG1WGA
    Future Proves Past
    Dark To Light
    Q