As our fun light-hearted week of sayings concludes, our last one is a little more of a riddle than our Elephants and Trends. This old Wall Street saying in a more descriptive term is “The Market’s Can Be Wrong Longer than You Can Stay Solvent”
Somewhat more self explaining with the full terminology, this phrase really caught our ears in late 1999 as the internet IPO market took off and continued to crush the short sellers who wisely bet against the no earnings, weak IPO’s, but miscalculated just how long the market could be wrong leading many to find other careers.
Fast forwarding to today, we certainly believe markets are frothy at best and possibly overvalued (growing greater by the day) BUT, as the saying goes, markets can be wrong for a long time.
So you may be asking, So What?
Ahh, here is the lesson…Never go “all in” one way or the other, and stay diversified, as the length of time to correct the “wrong” may be hazardous. Most recently it appears markets are too optimistic, there will likely be a time when they are too pessimistic too. We do not know what will bring back reality, but are happy to wait and prepare, never going “All In.”
This weekend brings a fun family and friend evening tonight and a basketball game followed by tennis dash on Saturday…Beam me up Scotty as we may have to be in two places at the same time.
Have a Super Friday and a very nice weekend!
JK
214-706-4300 http://www.jkfinancialinc.com 8222 Douglas Ave # 590 Dallas, TX 75225