Throughout Monday's trading, the path of least resistance in terms of optimal decision making dictated purchasing some stock.
Tuesday was much the same, as the market decided to reverse a bit while investors remained generally pessimistic about the outlook for the remainder of this week.
Wednesday is a different animal, however. There are certain days in the market matrix where the markets are so deep into No Man's Land that you simply have to freeze.
If anything, you use day's like today to derisk the portfolio a bit.
And that's how we're approaching today. We sold off the Zillow we purchased Monday morning for a small profit, after adding other equity exposure in the Real Estate 2.0 disruption world yesterday.
The original plan was to hold Zillow through earnings. However, when you have no cushion in your portfolio for big swings due to performance issues, it's time to hit for singles, then doubles, triples and eventually home runs again. Just like anything else you have to work your way back into the mix.
Way too many guys step up to the plate swinging for the fences, especially during difficult market periods. That's exactly what the market wants you to do. It wants to suck you into stupid decisions in an effort to feel good again.
Unfortunately, or perhaps fortunately (depending on how you look at it), good trading/investing is boring.
Once again, this dump in yields creates a nice risk/reward equation for equities into the end of the week. Paired with some really pessimistic sentiment, it's a short-term "add to your equity exposure" type of opportunity. That has been our argument from Monday on.
Thinking more than a week out is a fruitless endeavor given the rapidly changing macro environment.
That's where we are for now.
Embrace your inner-boredom.
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