WHEN 70% LONG BECOMES A PIECE OF CELERY WITH DRY TOAST
In a sudden act of bravado, the market has caused those who are underexposed to be humiliated in front of an audience of cheering bulls, wearing funny hats and chanting loudly. I am, unfortunately, one of those who has had my underwear pulled over my head, while "real" bulls dance around, kicking me in my ass.
It wouldn't be nearly as despicable a circumstance if the portfolio was performing well. Needless to say, it is basically flat. A flat line of equity gains, indicating a clear lack of momentum amongst all four of the names in the portfolio.
Let me tell you what you don't do if you are facing a similar circumstance to mine: You don't rush out, buying into names simply because you feel you are missing out. You don't sulk in your piss until you have no choice but to act irrationally in some bullish explosion of asset allocation in order to play catch up.
You simply stick to your method of investment, without feeling forced into any single action because the market is moving. This is, of course, assuming that your method is a competent one.
With this piece of instructive elegance out of the way, I am free to go back to my screen and fret about being flat on the month, while the market runs away to the upside. Additionally, I am looking forward to pounding my fists as I scan the environment surrounding me, unable to find one piece of meat worthy of having a meeting with teeth. Opportunity is sparse.
I'm 70% long and it is as unsatisfying as a piece of celery with dry toast.
