In The End, This Is For The Best

After a third big down day in a row, you have to believe that this is all for the best.

Stocks need to get down to proper valuations. Companies need to focus on making money. Companies that can’t make money need to shut down so that new companies can be created. Every once and a while, a forest fire is good to clear out the dead wood and make room for new trees.

There’s nothing to do but hold at this point. No point in selling (or reducing) my exposure to tech stocks. I’m pretty happy with the companies I own, and I don’t think there’s anything I would sell at this point.

Let’s talk about what I am grateful for.

I am grateful for my real life. I had an absolutely wonderful day today. The weather was amazing, I sat by the water and had a couple of beers. I walked a lot. I swam. A perfect day.

I am grateful that I only have about 35% of my liquid net worth invested in the market. The volatility I am experiencing as I look at my stock portfolio is 1/3 of what it would be if I were fully invested.

So I’m sitting on 65% of cash, which lets me sleep well at night. I should be in no rush to deploy that cash. But I am ready when it looks like the bottom is in.

Another thing I’m grateful for is that my business is still doing well, and I should focus on that. Just as the companies on the stock market need to focus on their p’s and q’s, I need to as well.

I still want to swim every day. There’s definitely time for that.