First, thank you for being part of Deep Knowledge Investing. I’ve loved investing since I was in college, and getting to think about it, write about it, and help all of you make money is both a pleasure and a privilege.
Please expect posting to slow a bit for the next couple of weeks. I’m not on vacation – it’s just that we’re done with big economic announcements, Fed rate hikes, inflation reports, and company earnings for the rest of the year. I’m staying on top of everything relevant to our positions, and will alert subscribers if my thoughts or positions change in any way.
In the meantime, I’m working on a short eBook as well as some potentially interesting company research right now. I’m also going to put out a post soon detailing my thoughts on the economy, inflation, Federal Reserve actions, and what I think happens next. This will be a recap for longtime readers, but we’ve recently added quite a few new subscribers, and I think it’s both helpful to get them caught-up. There’s also value to being “on-record” with my view.
I’d also like to offer a sincere round of applause to DKI subscribers for your iron constitutions. I’ve written a lot about the importance of being data, research, and process driven in investing. Once you get emotional, it’s all going to go badly. People often talk about what allows them to sleep well, or to avoid anxiety or stress while investing. It’s not my job to feel good. It’s my job to help you make money.
Last Monday, when we got a CPI of “only” 7.1% vs the 7.3% expected, the market indexes were instantly up 3% – 4%. Given that I’m heavily hedged due to high inflation and the necessary actions of the Fed, it was a bit of a “gut punch”. Despite that, I didn’t get a singe angry or concerned email from a DKI subscriber. Everyone remained calm and “stayed the course”. The result was that by the end of Monday, the markets had given up most of the early gains, and were then down 7.5% from the highs. We were rewarded for our calm analytical approach, and every one of you has the most important trait of a great trader – calm under pressure.
There will be more posts to come this week, but let me take this moment to thank all of you, to wish some of you a Happy Hanukah (starting tonight), to wish others a Merry Christmas next week, and to wish all of you Happy Holidays. I’m grateful for each of you.