Just a quick update since I posted “Look Out Below” on July 22. The S&P 500 was 954.07. Today it closed at 997.08.
As I said, I still think the rally could have more to go, but I am not worried about it either way because I said I have kept my core dividend paying holdings. This way, I take advantage of the rally while protecting myself with cash on the sidelines.
I said then that I was taking off my trading positions, so I did miss out on 5% or so of positive market action but that is really small potatoes after I said I was getting back in on march 13 in the post “What I’m Doing Now.”
I am perfectly fine to wait til the fall with my core holdings taking advantage of any market move up. I have made good money from March 13 with my trading positions so I am ready to buy if there’s another drop in the fall.
I DO NOT CHASE STOCKS. If I miss a big run, then I sit and say “damn,” then I move on to the next thing. Prior to having the ability to do that, I was undisciplined. I made and lost a fortune many times, but now I never lose big because I never make the same mistakes twice.
If you want to latch on to try and get another 10%-15% out of this rally then go for it, but I am not doing it. I am not doing it because I already made my money on the 50% run from the March lows that I told you about here at the Solitude Blog.
If you missed the run, do not feel bad! I have missed countless runs that I still snicker about to this day, so do not worry. Remember, the market can stay irrational a hell of alot longer then you can stay solvent!