Focus on Return OF Capital in This Market

Do as I say, not what I do. I have been very bearish (for me) because of the overall price action. You can hang on to a strong tree but in a flood, you will still likely get swept away.

I was a buyer/trader today and escaped the day in good shape. Not the safest of ideas in this mess of a tape. My core positions have been getting slaughtered or giving up big gains.

Dr. Brett has a great market twitter that you should follow if you want unbiased market data. I check in every day. I think I got off lucky today and may not be so lucky tomorrow.

I am not bottom fishing in financials but could get swept away in a flood of selling anyways – even focused on strength. Dr. Brett has a great reminder tonight of the importance of Return OF Capital . Here’s the key takeaway:

There’s an old saying about the importance of knowing when to be concerned about the return on your capital and when to be concerned with the return *of* your capital. When weak markets don’t attract sustained buying–and continue to weaken–my foremost concern is capital preservation.