May 21, 2006
Patience is a virtue.
I am pretty amazed that little was made of last weeks nasty global selloff. I expected some panic from the press.
The fact that we have NO MEDIA PANIC puts me squarely in the BE PATIENT camp. They will panic. The hysterical headlines will appear.
One of my favorite scenes ever was in "Braveheart"
where Mel Gibson and his ratpack Scottish warriors by his side. By each man’s feet laid giant spears, which would – if utilized at exactly the proper moment – let the onrushing and unwitting enemy Brits know that the Scots would no longer idly accept their fates as the oppressed. With the British bearing down on horseback, Wallace implored his men not to spring the spears prematurely. “Hold!” he bellowed. And then again, louder, “Hold!!!” And when the enemy was just yards away, he yelled one final time, “HOLD!!!” Finally, Wallace gave the command to raise the giant weapons, and a gruesome scene ensued.
No deaths are at stake in my world, but the same battle cry needs to be used in falling markets. You put your capital to work impatiently and a bludgeoning occurs
It is now time to watch and be patient. There is major damage, technically and psychologically in global markets.
If a real downturn has started your patience here will preserve capital. If the markets stabilize and challenge old highs, there will be plenty of opportunities and new trends. Now is a good time to watch the new high list. Actually, it always is!
This is why I do not watch the new low list .