This bull market is ripping away day after day and is making people like me look smart.
It’s not supposed to be easy. it is not easy. I am not smarter because some of my stocks have tripled and quadrupled. I am standing aside and letting things happen, but the bull is making things happen.
Markets like this DO NOT last. I just try and be responsible with profits and do less timing.
When things are this good, do not fbecome a …..”Buy and Forget to Sell Investor“.
It is a great post by Vitaly. Here is my fave piece:
Lately I’ve been getting this powerful feeling that everything I touch turns to gold. Every time I buy a stock it goes up. Did I finally figure out the stock market game? Did I find a secret to Will Rogers’ advice? Buy stocks that go up, and if they don’t go up, don’t buy them.
No, I didn’t get much smarter, and my stock picking skills haven’t improved that much over the last year. I was simply a willing participant in the latest (cyclical) bull market. A bull market makes you feel smarter than you are (sorry) the same way a bear market makes you feel dumber than you are. Feeling smart makes you do the opposite of what you should be doing. The euphoria of the golden touch is a dangerous thing because it can make you (and me) careless. We forget about risk since we haven’t seen it in a while, and instead only focus on our rewards. You have to actively make yourself aware of the four letter word – RISK!
It’s not that I am bearish or selling everything. I am looking to add some stocks. I just think you need to think daily about risk and what could happen when things turn. They will.
Sometimes I think we had the bear market and now we’re in a scenario like late the 80s through the 90s where you can just buy the S&P 500 and look like a genius. How long it goes on who knows. I don’t think retail investors have even begun to get sucked in.
Some people say we shouldn’t mistake brains for a bull market. I say we should have enough brains to buy a bull market when we see it! There are a lot of stupid people out there, too stupid to see the 2000-lb bull in their living rooms.
Up over 12% in six months. Did you get you some of that? If you didn’t get you some of that, who do you have to blame?