If there is one thing that has worked since October, it’s cash. I feel like people are afraid of that word. Like you’re doing something wrong for raising some (or a lot of) cash. Do you think it makes sense to always be fully invested? I don’t.

I look at everything through the lens of potential opportunity cost. What else could we be doing with that money? In liquid markets, sometimes it’s treasury bonds, other times it’s gold, and of course all of the market neutral pair trades and options strategies to profit from sideways markets.

Cash is an investment too. Why do you always have to be all in? You want to think 50 years out? Go ahead. We’re only concerned about the next couple of quarters. We’ll worry about next year, next year. And 50 years from now? I only hope to be around sipping wine and ripping through charts. We’ll see…

So about today. [Read more…]