THERE IS NOTHING TO SEE HERE, CARRY ON
As I sit here to ponder the ongoing conundrum that is the financial markets over a cup of tea, with Bun B delivering his rousing collaboration with Jeezy that they aptly named "Just Like That" playing in the background, I am torn by the continuing bifurcation between the markets and the portfolio of names I have assembled. Typically when greeted with under-performance, such as the case in this particular situation, there are a number of simple alternatives to remedy the issue.
In this case, however, I am hard pressed to discover a means of delivering a return via any vehicle that is able to deliver reasonable risk/reward over the intermediate to long-term. My question then becomes: How many other guardians of capital are facing the same dilemma as I am? According to the statistics that are being cluster-bombed into whatever accommodating portions of the mind remain, the average, above average and even mediocre market professional is fully allocated to this market currently.
That is a very important distinction if you subscribe to the same core fundamental concept as I do when it comes to the market. That concept simply states that wherever the most opportunity for pain exists, the market will exploit that point. Therefore, if allocation is to the point of being full across a broad spectrum of market professionals, the knife wielding sociopath that is the stock market will turn maniacal, with Wall Street eventually being covered in testes from multiple affluent regions throughout the modern world. A United Colors of Benetton testicular circus for the ages, if you will.
It becomes a difficult proposition then. I have two distinct sets of circumstances causing me angst:
1. Risk/reward for new positions that is well below any conceivable comfort level that I am willing to accept
2. A belief in the markets being the ultimate henchman that won't allow me to act with confidence when everybody else is
With those factors playing against me, whether or not they are reality based is not important. The fact that I am entertaining them means that there is not a move I can make outside of where I am currently that can be done with any confidence. To attempt to play catch up here because I am under-performing a benchmark that has been on a literal tear has a negative expected value, therefore.
So I sit with a 75% invested portfolio in names that really haven't been doing a whole lot outside of SPNS.
As I said, there is nothing to see here, carry on.
