Posts Tagged Market Volatility
Pondering the Market Rally Over Obama’s speech and Some Ice Cream
Posted by blodmell in Emerging Markets on January 25th, 2012
The risk rally this month is little short of stunning. Portfolios that were in the trash are in shooting range of breaking even. The fall was fast but so was the rally. I assume more volatility awaits. These are all lessons in discipline. Buy low, sell high. Duh. But nobody does it. I watched folks run for the exit in December and now they want to buy. It’s tough being an investor. Long term? That word is being gutted. The volatility has made us all nuts. Anyway, Obama has the answer for our problems…populism. I worked in the fields yesterday with the kids in the farm. We built a tree house. I couldn’t move this morn but a handful of pills made me feel better until now. The capitalist Americans have lost their way and the communist Chinese grabbed the Economist mag headline this week, “The Rise Of State Capitalism”. http://www.economist.com/node/21543160
The world is literally upside down. Thus, the emerging market story is in tact. One just has to have either the b..ls or capital to handle it.
At least the dulce de leche is delicious.
Hold The Line
Posted by blodmell in Emerging Markets, Global Economy, Investment Advisory on June 13th, 2011
I’ve been awful busy lately and the markets have kept the pressure on. Folks are obsessed with Greece. The same ol’ China fears linger. Even Brazil is under pressure as the doubters ponder whether they are in a bubble. The “double dip” word is even being dropped again.
The USA is in an awkward “soft patch”. Remember, markets are being bought and sold in a rear view mirror. Prices are constantly pricing in “worst case scenario” fears. We have to be patient right now and keep building on our positions when prices are cheap. The commodity stories haven’t changed in a month just the fears around them.
By the way, that Amalgamood vision I posted on last week is being presented at a conference in London this week. I can’t make it but I’m eager to hear more about it.
Buy on dips! I know it is a cliche but a good one.
Managing Volatility
Posted by blodmell in Uncategorized on January 5th, 2011
Black Box trading and the global sensitivity to the European debt theme, China’s inflation, and not to mention the USA’s awkward recovery/debt keep the markets in a “hysterical” vibe. This bizarre mix of fears about inflation AND slow growth is very confusing for policymakers and investors. I believe the global recovery will weather all of those threats but it could be bumpy. I’ve been getting really aggressive with limit orders, blanketing entire portfolios with buys and sells on 15-25% on the up and downside. If we can continue to build positions in great long term companies and allow the volatility to work for us in a conservative way….we’ll outperform.
Nasty Day In Global Equity Markets But “Big Picture” Still Solid
Posted by blodmell in Uncategorized on November 14th, 2010
China worries and eurozone fears are back again. Just when investors thought chucky was dead or Jaws was gone….a day like Friday appears as a reminder. “Market risk” and volatility are here to stay. Does that mean we should all become traders and just ride the “risk on/risk off” roller coaster? No. I know it is difficult to return hard earned market gains to one ugly day like Friday. It makes you feel robbed. I understand. Nevertheless, we must look at the longer term. Just observe how rapid the run up has been these last few months. In August Vale, SA for example dipped below 20 and until Friday it was at 30. That is a 35% move in 8 weeks. Even if Vale Preferreds return to 24, we just have to weather it and allow market volatility to primarily serve as a buy signal and not a short term sell signal. Patience, investors.
We Are Entering The Fifth Day Of Downward Pressure On Global Equities
Posted by blodmell in Uncategorized on August 25th, 2010
We´ve been here before. It should get easier every time to deal with market volatility. Clients, cooly cost average down as opportunities arise. I noticed since the copper prices have been under pressure that several low ball limit orders for Sterlite Industries in India ticked off. This is the strategic approach.
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