I Will Be Satisfied With Nothing Less Than a Crash

Posted on Aug 24 2015 - 9:41am by Sharpe Trade

Make no mistake.

I am having a ball right now.  We have received our stock market correction, as we thought could happen.  And I am having a blast.  This is fun.  

But I could be happier.

Because I want a full-on … full bore … stock market crash.  We’re not there yet.

The only thing we hold in our short-term teaching account, are instruments exposed to the long end of the bond curve ….

TLT Sharpe Report

Yeah … those.

I got my face stomped in earlier in the year.  And days like today are exactly why I love this business.

Control your risk.

Never become complacent, or allow a mistake to ‘get inside your head’.

Control your risk.

And your year can turn around in the matter of a few days time.  And people can spare me their humanitarian concern.  It’s a measily 10% correction.  Statistically, we get them once a year.

There is no reason to step in front of a moving train.  Let it burn.  And know that if the stock market truly does crash?  I will no longer simply be having fun.

At that point, I would be satisfied … 

4 Comments so far. Feel free to join this conversation.

  1. NewLife August 24, 2015 at 10:27 am - Reply

    Man,the volatility today is amazing. Q’s rebound 15 points in as many minutes. I want to get long but I’m not trusting anything yet.

    Good to see gold doing nothing though lol

    • Dan August 24, 2015 at 10:38 am - Reply

      F I R E !!! LOL

      Yeah, this is where it gets interesting. Note the time. No telling yet, and my two hours aren’t telling me there is any reason to be long …

      This is the fun stuff …


  2. Viet August 24, 2015 at 11:54 am - Reply

    Dan, you must enlighten us with more of your ‘rants’ on current market conditions. I’d pay to listen to it 😀

    What a day it has been. I’ve been whipsawed all over the place (trend following) and today alone has paid for all the previous 22 losses and then some.

    Risk management NEVER fails. Thank you Dan for drilling it into me all those years.

  3. Brian August 24, 2015 at 6:06 pm - Reply

    So many people probably worrying about the market now. How quick we are to forget history. 2010 and 2011 had notable declines, too. 2011’s actually went down more than 20% off a peak in the S&P. In both cases, the right to do was not to panic and chase momentum, but instead stick with your plan. Either make money as a bear or have cash at the ready to enjoy some very opportunistic buying. Finally some some higher dividend yields, right?

    As bearish as the market looks now, and we’re still only in correction territory, I also doubt we’ll see another 2008 crash. Economic growth may be paltry, but I think this is all just a wash out and the market will stabilize somewhere lower.

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