Happy Every Day

Posted on Sunday, March 14th, 2021

 

I had a client text me this week. He is very market savvy yet never worked a day in the markets. He texted me two weeks ago and said “Did you ever get the feeling that the party is over?” This week he texted me again and said,” Time to sell everything.”… “Making money in the market is easier than working.”

The stimulus bills are having unintended negative adverse consequences. There are people not working who are making more staying at home than if they went to work. There are people working who are making more money trading than working. This doesn’t end well. For your information the mystery client is a blue collar worker who just has a very good feel for the market. I am convinced he would have done VERY well on Wall Street but just chose not to. He is fond of saying “50% in the market 50% out. That way I am happy every day”. Sage words. Our antennae is up and looking for trouble.

It was another great week. More and more investors are fleeing growth and tech stocks while pouring into energy, small cap, and financials. While we agree it is hard to chase those stocks at this point we believe that this rotation could go on for years.

There is an old saying on Wall Street. “Buy the rumor. Sell the news.” The end of the pandemic is near. Investors have bought the rumor. Will they sell the news? Another famous Wall Street saying is “Sell in May and go Away”. I think we are early but our finger is on the sell trigger.

In its brief 232 years of existence … there has been no incubator for unleashing human potential like America,”…“Despite some severe interruptions, our country’s economic progress has been breathtaking. Our unwavering conclusion: Never bet against America.” – Warren Buffet Annual Letter 2021

 

 

I think we aspire less to foresee the future and more to be a great contingency planner… you can respond very fast to what’s happening because you thought through all the possibilities, – Lloyd  Blankfein

A pessimist sees the difficulty in every opportunity; an optimist sees the opportunity in every difficulty. – Winston Churchill

 

To learn more about us and Blackthorn Asset Management LLC visit our website at www.BlackthornAsset.com .

 

Disclosure: This blog is informational and is not a recommendation to buy or sell anything. If you are thinking about investing consider the risk. Everyone’s financial situation is different. Consult your financial advisor.