Today's Markets Are Schizophrenic

My Hands Are Very Warm

I’m not sure about you but when it comes to managing money, both my own and that of others, I’ve used a philosophy of doing as little as possible as often as possible. It’s kind of like my overall philosophy of life where my objective was similar, do as little as possible to make as much as possible. Granted, I’ve made a bunch as have my clients but I “work”, essentially around the clock so in essence I’ve failed. It’s a good thing I love what I do so I can’t really call it work. How about you? Do you love what you do?

If you are a “trader” in today’s schizophrenic markets I do not believe for a minute you love your work. It’s not possible. Making a fortune one day then giving it all back and more the next is not a definition of success. To those of y’all who are “always” right, good for you. Let me know where I can read about your story on Facebook or TikTok. I doubt your article exists for good reason. If you were making so much money the last thing you would have time to do is post.

For me, it’s possible to teach and publish for good reason. I removed “schizophrenia” from life decades ago. As I’ve said many times I’m boring and I’m glad I am. If not the time allocated to keeping everyone informed would not be available. Since what I am working on requires this mental matrix it’s even better. I must say it is catching up to me “time” wise and that’s something I have much less of daily. Nonetheless, keep it up. I love each of you for, in essence, keeping me happy.

The last couple days have been, how can I say it nicely, stupid. I made a couple minor changes that I’ll talk about later in this article but more than not I did what I do best; I sat on my hands. Remember, regardless of who wins the presidential election, rates are headed lower. When, your guess is as good as mine, but interest rates are headed lower. The schizophrenia infecting our markets just gets in the way for me and I hope you as well. It must be or the tens of thousands who follow me wouldn’t be here.

What Does Schizophrenia Look Like

Funny you should ask. If you’ve been watching the markets, the news, what’s reported and more so what’s not reported and where you would not ask questions like these, read on. Charts have a way of expressing my thoughts better so let’s take a look at a couple.

Like today’s schizophrenic musical selection, “what goes up, must come down”. Give me liberty or give me death is a pretty good quote. For me it’s give me the “sidelines” and a long term plan. Everyone else can time this monster, not me.

Then there’s the 30-year bonds. That guy Powell came out yesterday and said the Fed is going to hurry up and wait. OK Jerome, I’ll wait right there beside you but we both know, as does Ueda in Japan, that interest rates here in the United States are coming down. We also know rates in Japan are going up, especially if the political atmosphere there changes as predicted. In any case, no one was paying attention to the Wizard of Oz yesterday. That man behind the curtain must be eating Yellen’s magic mushrooms, or maybe it was me. I never ate one of those but I am willing to hold bonds for quite some time. How about you?

Then there’s Cocoa. I had to include this chart just to “puff” my chest out a little bit to say “I told you so”. No I did not participate in the upside towards 5,000. I’m “sitting” on my hands just waiting for a top to be put in. Those of you who pay me $99.00 a year will know first. Funny how that works, eh?

And now, here’s a little of what I did today, I rebalanced. Being up about 40% in Simon Property Group, together with the negative news surrounding the “commercial” real property market, I took some profits. Profits are good, eh? I think so and made it even better.

I took the profit and bought a few more shares of Nutrien, one of the best long-term Canadian companies I know. Hell, they are beating up the farmed commodities so as I’m waiting to buy Corn futures I’ll buy a little more of a solid dividend payer while I wait. Simple transaction for someone who does very little. I’m not doing what I do for my health. You’re not reading, listening or learning for yours either.

So that’s it folks, time to fill the car with gasoline and do a little shopping with the far better half. If you have not already signed up for my “paid” Substack newsletter think about spending all of $99.00 annually and join the crowd. Being first to get my ideas is a good thing. You can ask anyone who is already on board and they’ll tell you, I’m real and so are my selections.

David Clayton Thomas of “Blood Sweat & Tears” must be a day trader. With the song “Spinning Wheel” he has to be. Schizophrenic reactions to today’s world are not how money is made. I’ll teach you if you’re patient but remember, learning is a journey a marathon, not a sprint. All things considered, those of you who caught on early are happy you did, I know it. It might take others a little more time to “see the light” but I’m patient . . . and my hands are warm from just sitting on them.