Gasp! Guffaw! Whammy! No matter what you have in your portfolio, you’ve been the Undertaker to Brock Lesnar this past week $WWE. You’ve been the Gators to the Huskies. The Badgers to the Wildcats! The ocean to Flight 370! Buffering to HBO GO! You’ve even had a worst first week than my own fantasy baseball team, Goldschmidt Happens (which accumulated a horrendous 4.96 ERA in Week 1). You. Have. Been. Violated.
So where do we go from here? Is it 2008 again? Are we doomed? What’s the next step? ARE YOU FREAKING OUT?!
I’m not at the moment and I’m going to tell you why. Yes, I have lost tens of thousands of dollars in the last three trading days. Yes, I have an additional amount of sweat upon my bald brow as I open up my portfolio. Yes, I have made mistakes by buying into dips a little too early before stocks dip more. But until I see one measure change on my stock market barometer, THIS GUY isn’t going to freak out. That measure is General Electric $GE.
You can read my past 150+ blogs to see how much I value GE as a Stalwart Beast. It’s the pulse of America, the pulse of the market, and the closest you can have to a diversified mutual fund in the form of a stock. So let me present you with how the most loved, the most diversified, the most common traded stocks, and how they have acted over the last month. Be warned Cash-ists…it ain’t pretty.
So yes, growth and risk and tech and almost everything else is bleeding worse than guests at the Red Wedding #GoT. No bother. The barometer of the market, General Electric, has only lost a mere 1%. To me, this shows there was a sell-off and there was fear. Mr. Main Street was even talking about the stock market, and we can’t have that. After all, it’s common knowledge amongst us traders that the only time to truly panic is when our elevator boy starts giving us stock tips. Well, the past month should have rattled enough cages to get rid of those in the market who thought they could just jump in and make money without due diligence. This isn’t 2008. This isn’t 2009. There are opportunities here.
If you scan my past blogs, you’ll see that I encouraged you to up your cash positions a few months ago. I myself was sitting around 30% cash (up from 20%). With recent opportunities, I’ve dipped in my toes and nibbled on positions like Salesforce $CRM, Zulily $ZU, and Facebook $FB, which are companies I’ve always wanted, but missed past opportunities. Granted, I didn’t always buy in the perfect position—but no one can time the market, so when GOOD companies suffer from BAD markets, I see value. I see opportunity.
Old Cash Bauer never TELLS you what to buy, but lets you know my thoughts and lets you know what I plan to buy. Yelp $YELP. Facebook. Twitter. And on and on.
When General Electric begins to plummet, so will my heart and my investment strategy. Until then, I will keep looking for GREAT companies to miss earnings, panic at the market, and other opportunities to buy when everyone else is selling. This isn’t Spring Cleaning, my friends. This is fear. This is sweet, unadulterated fear. And it’s time to ready your buys.