Agree completely. Too many Questions to ponder. Will the recession turn down more than exp'd, hence deeper est cuts? Markets are close to avg valuation. If we have a slow/ no growth economy and flattish EPS for some time what will drive multiples? What if inflation stays sticky above 5% ? So, what will EPS growth be? What is the right multiple? Is liquidity/ The FED about to slow rate increases? Will it be enough to sustain equities recent move ? No one can answer these. All a guess. Follow price and all of this is immaterial.
Priceless! Unfortunately, many (if not most) investors are caught up in the narratives, peddled by the media and others. My best periods as an investor were when I simply followed price, and intentionally avoided trying to figure out why. Execute the buys. Set the stops and go play golf.
Brilliant! The market has a mind of its own. Even if it were a whipsaw, nothing would happen, no regrets, provided you control risk (which you do). Being disciplined is critical—no second-guessing.
Brilliant yet simple exposition on how markets work in combination with crowd sentiment and positioning. Means a lot to hear this from you since its backed by years of experience. Thank you for sharing this.
Perfectly stated in my opinion.
Agree completely. Too many Questions to ponder. Will the recession turn down more than exp'd, hence deeper est cuts? Markets are close to avg valuation. If we have a slow/ no growth economy and flattish EPS for some time what will drive multiples? What if inflation stays sticky above 5% ? So, what will EPS growth be? What is the right multiple? Is liquidity/ The FED about to slow rate increases? Will it be enough to sustain equities recent move ? No one can answer these. All a guess. Follow price and all of this is immaterial.
Priceless! Unfortunately, many (if not most) investors are caught up in the narratives, peddled by the media and others. My best periods as an investor were when I simply followed price, and intentionally avoided trying to figure out why. Execute the buys. Set the stops and go play golf.
You wrote this article 30 years too late! If I could have read this in 1991! I learned this lesson previously. Its got to be mechanical!
Brilliant! The market has a mind of its own. Even if it were a whipsaw, nothing would happen, no regrets, provided you control risk (which you do). Being disciplined is critical—no second-guessing.
Brilliant yet simple exposition on how markets work in combination with crowd sentiment and positioning. Means a lot to hear this from you since its backed by years of experience. Thank you for sharing this.
Just found you on Substack Tom! Didn’t know you were on here until I listened to your last podcast with Covel. Glad you’re here.
Do you have a subscriber only feed?