Sunday, January 10, 2016

What's More Surprising Than The Stock Market's Performance So Far?

The stock market is off to the worst start of the year ever.  It took us all by surprise.  When the price of the two equities I own (Alcoa and GM) fell below my cost basis for each, I did some buying.  A concentrated portfolio of only two to three equities has worked for me, someone with only $100-$200 of cash available to invest at the start of each month.  I don't have a lot of money in my Brokerage account these days, so spreading what little I do have diminishes the impact of any successful trade.  Here's how I did last year: 



I made a whopping $645.47, only a little better than my net gains for 2014.  I would be laughing at this amount, if it weren't for the fact that 2015 was an extremely difficult year in the market for every investor, and I am proud to have traded all year and actually netted a profit, albeit a small one.

The past is the past.  2016 has surprised indeed.  I'm hanging tough, despite seeing unrealized losses add up like everyone else.  My advice to you is simple...take what the market gives you.  Long-term investors have opportunities in the making in any market.  Now onto bigger surprises of the year so far.  I've ranked them in order from most to least surprising.





1.  El Chapo gets captured...alive!  The most powerful drug boss in the world was apparently comfortable enough in his home state to host Sean Penn at one of his ranch homes.  I'd like to call his residence a hideout, but let's be honest, he wasn't trying really hard to stay concealed.  That he wasn't killed in the raid that led to his capture is a huge surprise.  This man has enough dirt on a country, its political and business leaders, to make Edward Snowden look like a high schooler overhearing two gossipy teachers.





2.  The government gives the Bundy's another (Cliven Bundy was first) free pass.  Ammon Bundy and his militia men take federal property (the Malheur National Wildlife Refuge), are squatting on it, and get to live to tell about it.  What makes these men so special that they have earned the restraint of government guns and helicopters?  Well...they're heavily armed, ready to die in a shoot-out (at least that's what they claim) for their beliefs, anti-government, and white.  When this is all over, the surprise will be if anyone gets arrested and has to serve time.





3.  Many gullible people still believing Donald Trump would put the American people ahead of himself, his personal brand, and businesses.  The Presidency would not stop Donald Trump from putting in time to preserve and grow his wealth.  Money making is in his DNA!  Of course, The Donald would be the first to tell us all that his personal business would never get in the way of leading us.  Trump supporter:  Go ahead and vote for Trump.  Just realize you're not going to get a full-time President if he should win.


4.  A Powerball jackpot that is over a billion!  It is rare for a jackpot to go beyond 800 million.  That's because as the jackpot grows, so do the number of players, obviously, increasing the odds of someone winning (not your odds...just the odds of someone getting the right combination of numbers).  Someone will win the Powerball billion next week...and I won't be surprised if they spend all of that money and go broke.

Thanks for reading!             

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