Day 143: Kabuki Theater?
The Mother's Little Helper portfolio was up today +4,932.95 (+0.72%). Overall GAIN YTD: +$109,835.50 (+18.81%). According to CNN Money the S&P 500 is up +5.67% Year To Date (http://money.cnn.com/data/markets/sandp/).
Yesterday the portfolio was down over 2%! The DOW dropped over 350 points! Political turmoil rages in Washington DC! Geo-political events seem to have thrown the whole world into chaos!
If you listen to the news that's what you walk away with. It's the old newspaper adage, if it bleeds it leads. But that's just not what's true when it comes to stocks and your investments. Cooler heads have to prevail. That's why when the DOW pulled back yesterday I didn't sit down and write a blog about why I think it happened. There's a thousand people out there trying to scare you about why it happened, and unfortunately some investors fell for it, or their computer algorithms did. The fact is the Presidents problems have nothing to do with how many shoes Nike sells, or how many hamburgers people eat at McDonald's, or how many nights they stay at Marriott hotels. No company stops what it does and gives up because of the kabuki theater in Washington.
Today the market rebounded and the portfolio saw a 0.72% gain, almost a 1/3 of what we lost yesterday magically replaced by nothing more than a good nights sleep.
Disclosure: I am personally invested long in these stocks that appear in the MLH portfolio and may purchase or sell share withing the next 72 hours. I am also invested in other stocks that do not appear in the MLH portfolio: BA, BRK.B, CELG, CSCO, CTXS, CVX, DOW, DVAX, FB, IBM, NTES, NVDA, OMER, PFE, PG, RDHL, SCHW, THO, TWX, VEEV, VZ, XLNX, XOM
I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.
This article is not intended to offer investing advice, guarantee 100% accurate predictions, or to be interpreted as providing a personal recommendation.