Another Brutal Day!

Those of us in Growth are getting pounded relentlessly. It’s good to be reminded by Saul that staying fully invested has worked for him over the years and he has both the courage, commitment, and the historical data to back his strategy up. This too shall pass - of course the main question is when - when will this pass?

One of the guys I follow regularly has a chart - unfortunately its for members only, that shows the time it took the markets to recover from various crises. But after listing it all he concludes that the markets generally recover in about a year. 365 days. Thats 1 football season + 1 Basketball season + 1 baseball season. Thats it. Here is a quote from his article:

“We have conditions for a bottom in terms of valuation and sentiment, but the macro environment is remarkably hostile. When looking at the current price action, there is no evidence that the bottom has already happened”.

He then lists 10 companies that many of us either have in our portfolios currently or had at one time or another and points out that from a fundamental perspective the companies are producing excellent quarterly results. Not just from selling more product but both existing customers who are spending more over time and form a continuous addition of new customers. Here is another quote from his article:

“Whatever happens with the stock price today is impermanent, and it really doesn’t matter much in the big scheme of things…For the most part these companies are trading at the low end of their valuation levels over the past several years. In some cases, they are the cheapest they have ever been.”

Special Note: I can hear Brother Ears now: Yeah but the valuations were absurd to begin with and can always go lower. Or something like that. And he is most certainly right as usual. But I counter balance his sage commentary with Saul who just Hunkers Down.

This was from an article from the Data Driven Investor.

Now all that is just good and dandy - But it remains that this correction and perhaps into a Bear market is certainly hard on everyone. And will be much more so if the combination of world events leads to a recession. The situation reminds me a lot of the new born gazelle on the Serengeti - whereby its only defense - when the big lions come looking, is to remain perfectly still; which is to say, Hunkered Down.

I finally relented on NET today and chose to sell it in accordance with RTHG strategy and then rolled the funds over into all the remaining companies (not quite equally but close enough) still standing in the portfolio:

DDOG
ZS
MNDY
BILL
SNOW
S
UPST

Thats it. Just 7…thats all. Hard to play with just 7 roster companies and a market that’s pressing full court every hour of the day, day-in and day-out that, if continued, will simply wear these guys down. And that may be exactly what we need: folks like us to give up and quit buying.

So what for now? As I mentioned to someone over the weekend: some things just have to be endured. I am out of cash - scraping the bottom of the barrel with RTHG and committed to enduring via Hunker Down newly born gazelle strategy. So thats that.

Have courage - this too shall pass - use RTHG to your advantage - Hunker Down.

All the Best,

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S has earnings tomorrow, so could be great/crappy post-ER. I bought a thimble-full of S today.
Also bought some UPST, GLBE, and PTLO, all near lows for the year, if not at lows.

We will see if tomorrow is Turnaround Tuesday or not!

Dreamer

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