I have been away from the internet for a week and a half helping family. When you're in a place that you can't get internet, you appreciate more of what you don't have and what you do have.
After my "rip van winkle" sleep time away from the market, today, I got the opportunity to delve into all the happenings of the last week and a half. It sure was an active time!
Several things came to my mind during this period.
- It is great to help out family members who are in a tough situation and to spend time with them. We all need help at times.
- I was glad that I have adjusted my portfolio to reduce risks over the last year and a half. Last week's drop and this week’s volatility point to why safety is important in a late stage market. Having a margin of safety is always good for a portfolio. You don't have to be on the "high wire" to get great returns. Slow and steady can be a great way to go at times.
The trade wars are still slowly evolving into more and more economic pain. Economics don't move quickly like the stock market, but they do move (more like a glacier). It is more like watching paint dry, but the paint is nonetheless drying. Once the paint is dry, it is hard to reverse a bad paint job and that can take time.
Keep your head about you in these more challenging times. It's always good to own high quality companies with great fundamental track records when the "rains" come.
Like a good Boy Scout, remember to "be prepared" with your umbrella. You never know when we might run into a deluge!
