"Why this is a bull market!" the old fellow said, as if he had given a long and detailed explanation.
“My dear boy’, said old Partridge, in great distress - “if I sold that stock now, I’d lose my position; and then where would I be?”
“I said I’d lose my position. When you are as old as I am and you have been through as many booms and panics as I have, you’ll know that to lose your position is something that nobody can afford; not even John D. Rockefeller. I paid a high price for it and I don’t feel like throwing away a second tuition fee,” said old Mr. Partridge.
“It’s a bull market, you know,” and he strutted away, leaving Elmer dazed.
This is a classic, from one of the investing classics of all time, in my opinion: "Reminiscences of a Stock Operator" written by Edwin Lefèvre. Originally published in 1923, the lessons are still as poignant as when I first read them in the 1980s. The timeless lesson of holding positions at certain times when the market is moving higher. I believe we are now in one of those times. The macro backdrop is supportive; the economy has been resilient, and the broader market does not look particularly expensive. The Federal Reserve is showing its cards again. This is a recipe for good returns going forward.
In May, it will be 40 years since I passed the Series 7. That marked the beginning of a career I never intended but have thoroughly enjoyed. I remember the first stock I purchased for clients: Polaroid. They had a new technology. A photo would roll out of the camera and then develop right in front of you. I recommended the stock at $27, and we sold it at $35. I was hooked on making money for clients in the market.
I survived the crashes of 1987, 2000, and 2008. 😊
The most exciting thing I want to share; "You know we are in a bull market." The recent close above the previous highs, coupled with the Federal Reserve's upcoming pivot, has moved me to the longer-term bull market camp. The market is due for some consolidation of the recent strong move. I think it will go higher from there.
Enjoy the day…r2
*this is not a specific recommendation. Each individual needs to consult their financial advisor, for specific recommendations. Your financial advisor knows your situation, and risk tolerance. They are best suited to make individual recommendations for you.