From Fear to FOMO to Fear...Get Used To It

Happy Sunday…

I have a redeye to London tonight from Toronto. I will be attending the world’s great cycling show (according to Matteo the founder), which does look fantastic (The Stocktoberfest of cycling). Team DSTNC.com will be joining me (go get yourself some cycling and running winter gear) to meet with all the great brands and exec teams in the industry.

Today is just a family day.

Yesterday I got to see my great nephew play hockey (he is just 6). His twin sister and I watched.

When I was 6, I played at this same rink. I ran into some ooooold friends which is very Toronto/Canada/hockey.

Last night my best pal Rob took me to the Leafs game and we beat Montreal. The oldest rivalry in hockey.

Onward…

No links today because I do not want to distract from the markets.

Bear markets are rare but so are melt ups. Bear markets are miserable and melt ups should be fun.

In late September, back on this site and on our weekly show Trends With Friends we put forward the case that it was and would continue to be a ‘shitstorm for the bears’. You can rewatch here. JC, Phil, Michael and I do a lot of work each day and in very different ways reading the ‘tape’, the sentiment, the money flows, the sectors, the fundamentals and the prices. We take the Tuesday ‘live’ show very seriously. Of course we are having fun, but the show is our own homework to try and figure out trends and momentum and direction in the markets of sectors and stocks. Back in September we did not care to predict the election, but what caught our attention was that the markets did not seem to care who was going to win the election. Stocks wanted to go higher.

So here we are post election with a Republican romp and the markets were right not to have been scared. In fact, for whatever reasons - the podcasters will give you 100’s of them now - the markets are in silly mode up.

Those prepared are enjoying, those that believed the miserable/asshattish media and poisonous talk from Trump and Kamala, were busy getting passports to Canada and Australia, raising cash and hedging.

Now they have to miss, chase or double down on being miserable and short.

I have no idea what happens out 6 months or one year out. I have no idea when the ‘animal spirits’ of this melt up subside, but I am enjoying the ride.

Because I am old, nervous and too Canadian still, I will be more on the lookout to sell some of my individual stocks and crypto into this melt up.

Warren Buffett has $350 billion in cash and nobody calls him stupid. Do not fall into the trap that you have to be leveraged long to get every ounce of a melt up.

I have my theories of what is to come from all this giddy behavior, the Republican sweep and the creepy techno crony capitalism that will now seep into the political and financial landscape. Fred Sanford sums it up here…

When will Fred and the markets suffer ‘the big one’ is a game for others newsletter and podcasts. I have no doubt it will happen and it will be nasty.

Until then…live a little.