Tuesday, January 12, 2021

Quote of the Day: Avoid Extremes!

Words of profound wisdom from Dave Rosenberg emphasis mine...
"I plan not to participate in bubbles so that I don’t end up participating in the bust. I may have missed all of the bubbles in the past, to much criticism at the time because few recognize the bubble as they live it. 

But then the accolades come in from those who listened since my advice didn’t destroy their financial situation once the bubble inevitably bursts. 

The key to success is to avoid extremes in both directions and to be involved when the odds are in your favor. 

As JP Morgan famously said, 
“I never got wealthy by buying at the lows and selling at the highs; I played the middle 60%.”
That, my friends, is called managing risk. Remember that four letter word —risk? Well, from my lens, we are well past that “middle 60%” with multiples now roughly 2 standard deviations above the norm."
a lot of excess!

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