No. of Recommendations: 9
"Far more money has been lost by investors in preparing for corrections, or anticipating corrections, than has been lost in the corrections themselves.”
Like Charlie once said: "Timing the market is difficult. You have to be right twice - when to get out and when to get back in - in a game where it's difficult to be right once."
I have to admit, I tire of this pithy quote. It may be true for Berkshire, which bounces up and down within a fairly well defined range.
It is surely not true for stocks which are so far out over their skis that any minor tremor can amount to a landslide in price, returning them to earth. The (so called) Magnificent Seven stocks got a bump over the past few months, putting them pretty squarely in the stratosphere, and with the rumblings of inflation, recession, instability and uncertainty looming, look to be coming back to earth. (Mostly, anyway.)
Now they may be fine companies, they may prosper going forward, but if you’re looking at the market and the (already existing) correction, then standing pat and hoping for a quick rebound may not be the path to paradise. Frankly, I’d hate to be a big holder of Ford or GM right now, and there are lots of others where the not-so-obvious effect of tariffs and disrupted supply chains is probably not putting a smile on certain CEO faces.
But if you want to just sit and watch, great, you do you. Some of us have been talking correction for months, a few even hazard a guess that it could be worse than that.
Berkshire is different. There are some others, but the most of the market is a little tipsy at the moment.
