I usually like to spend my time with these articles writing a funny analogy to a golf or fishing trip or something about how investing can be like raising kids. Today's message, however, is simpler and more straightforward.
Folks, I've written you a lot about the market's wild gyrations over the last month. I've told you that "volatility creates opportunity," but I'm here to tell you today that things are different.
I spent much of yesterday thinking about you and your portfolios. Like me, I'm guessing that you have accounts that are set up for your retirement and other savings, plus your accounts for speculation trades.
This is wise, but there's something we all must consider today, and for the next month or so… this isn't even a speculative market; it's chaos.
I don't say this to strike fear – 10 minutes in front of a television will do that – but instead, I want to make a point. Speculation still depends on an inherent ability to forecast something that may happen. This market crossed a line where speculation ended and chaos began last Monday.
Now, we need the markets to reprice risk and begin rebuilding back to a new normal. It will happen.
How long will this take? Nobody can answer that question, but I do know that I'll be here with you the whole time, and when it does, we'll pick-up right where we left off. We will have opportunities here and there along the way, while we look for the market to get a fundamental reset in order to be anything less than dangerous.
About the Author
Chris Johnson is a quant - he's obsessed with building and perfecting mathematical models that allow him to predict, with startling accuracy, the direction of the markets, entire sectors, and individual securities. For the last year, he's been researching and building a new system that lets him move swiftly in and out of the hottest stocks in the market for life-changing gains - entirely on his own terms. The results of his newly-minted Night Trader system are nothing short of amazing.
Chris also contributes to Money Morning as the Quant Analysis Specialist.