Thursday, July 9, 2015

Zerohedgey? Feeling Edgey?

I realized my posts of as late has been quite... Zerohedge-y.

Which is characterized by being a skeptical critic of the modern financial system, having a huge dislike to Keynesian economics, subtle belief in TPTB, a fetish for gold, and of course, a perma-bear mentality for stocks.


The problem is that ZH is actually right most of the time, which reinforces to me that they aren't that crazy after all.

Personally, I feel very uneasy if I haven't at least screened through the headlines on ZH. I think that they give great news that the main stream media does not report on. Plus the people that comment are hella funny!

People that read ZH really have to be very discerning and objective with the news that they are digesting. Someone without the proper content filtering and emotional controls will leverage up and short the markets after reading ZH for a week. That might not be the smartest thing to do.

Anyway, on a separate issue, I would like to remind people that the STI is not even down 8% from its peak yet.

If you are getting antsy and uncomfortable holding onto stocks now, you better just sell right here, and right now. If stocks drop another 10%, which is well within reasonable possibility to happen, can you stomach and hold onto those losses? Or another 20%? Or 30%?

Investing and immediately making unrealized capital gains and staying that way is pure fantasy. If you aren't comfortable sitting in unrealized losses, the stock market isn't for you. A bear market will also kick your ass.

If you can't take the heat, get out of the kitchen.

I have no dependents. My parents do not rely on my allowance to survive. I'm debt free. None of my investments are leveraged. My asset allocation is quite diversified. My emergency fund is full. My warchest is expanding. My job is secure as far as my eye can see. I have a very high "risk" tolerance. I pay money to jump off things for fun.

I'm not worried for a bear market. In fact, I want it to come. Like seriously, I want it to come. The sooner, the better. Let's not kick the can about this, eh?

2 comments:

  1. Not too late to make these claims after u had been through a full bull bear cycle.. No amt of mental prep is sufficient till the true test comes, It will be different

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  2. In 2011 when I'd just started investing, I wanted a bear market to come quickly, too. Now I think differently. Because assuming you'll be able to double your money by buying during a bear market, why would you want the bear market to come now, when you'll have much more cash in a few years' time and can make much more?

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