On Wednesday we went on a pretty good hike up a mountain and this picture is what we saw as we made our way up.There wasn't much of a trail. We could see the trail but it was overgrown, wet with rain that was coming and going and it could have been dangerous if we hadn't been paying close attention.
This description could sort of lends itself to navigating the stock market.
About 2/3rds of the way back down Joellyn slipped on a wet rock and landed on her tail bone and man did it hurt, it brought tears to her eyes. It was painful but there is no lasting damage.
The stock market sort of slipped on a wet rock on February 27 and has now bounced back up with no lasting damage.
There are ways to reduce the impact of slipping on the trail (in the market). Joellyn could have not stepped on the rock, this was possible at the point on the trail where she slipped.
Investing can be done to minimize the impact of a slip too. One way is to avoid over sized bets on any one outcome. For example the energy sector makes up about 10% of the S&P 500 (and the Wilshire Total Market Index too for that matter). Going 15% energy might be an overweight that isn't absurdly risky where 30% energy probably would be.
Another example would be to see what sort of negative market event your portfolio is most susceptible to at a time when things are going well and deciding to reduce exposure to the thing you are vulnerable to.
I started getting worried about the yen in late January (I'm on vacation and to preserve marital harmony I am not taking the extra time to find the links) and in early February I sold DB Currency Harvest (DBV) thinking I was too exposed to the carry trade given I owned DBV along with Australian and Icelandic exposure.
Selling DBV may or may not been the best possible trade but it did reduce exposure to something I felt I was vulnerable to.
Most portfolios are vulnerable to something, including yours probably. This sort of introspective look could spare you from so slipping hard it brings tears to your eyes.
If this trail had a name it would be the Heiau (the title of this post) trail. It is pronounced hey-ow and you can click here to see what the word means.
5 comments:
Off topic comment: Roger I love the blown up large size versions of your photos (just click on a photo). What digital camera are you using because the detail is excellent. I know something about photos having spent almost three decades with Eastman Kodak. I sure do love those lush green scenes.
OT: Don't get LOST. I can not get enough of that show...filmed somewhere on the islands. I think this show, and a few others of lately, will be regarded as an isolated but new golden era of tv.
Now back to On Topic: The politics of marriage dictates that you devote at least three consecutive days to making your vacation a total break from reality. Embrace fantasy. The dividends will follow. Sorry to be pedantic. Your readership will survive, of course as long as you show pictures upon return.
our camera is a Konica Minolta 5.0 pixel, we've had it about a year and half.
of course Joellyn says it is the photographer not the camera.
Great vacation and a great week fot stocks. This is not a vacation for you, R, this must be a model for heaven.
Well earned.
lol, thanks T.
I worked 5-6 hours a day while we have been here, 12 or 13 is normal at home.
So really I was just working remotely but my wife really gets it and has been a trooper.
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