I am gravely disappointed by the present from the stock market this past week. Truly three straight days of merciless beatings, exclaims Steve Reitmeister, editor of Reitmeister Total Return.
Kulicke and Soffa Industries Inc. (KLIC) is a great example. It was down 9% early in the session, fought back to breakeven, then frittered that away to end the day down 5%.
Why? Better stated as; why ask why?
That is just the way the modern stock market works, because the computers are making the vast majority of the trades. Not that they are more rational than people. Actually, I find their actions highly irrational.
This leads back to previous statements about how the market has operated this year. Kind of like a slot machine.
Lemons, lemons, lemons...JACKPOT!
Meaning, we have endured other painful periods like this past week followed by a round of glorious outperformance. Heck, that was the case last week, when we had back-to-back days leading to a 3% gain while the S&P was only modestly in positive territory.
This is another way of saying to step back and look at the big picture to appreciate our still impressive lead over Mr. Market this year. We should never get too high when the getting is good. Nor too low when the lemons roll up on the screen, like now.
I believe strongly in every stock & ETF that is in our portfolio today. And there is no part of their price action this week that makes me doubt their stellar fundamental outlook and upside potential.
This stoic resolve is not unwarranted stubbornness. It is actually highly logical and profitable, given the way it has played out for us in the past. And thus, it is wise to stay the same course for the future.
Learn more about Steve Reitmeister at StockNews.com.
