This time it is different.

If you have invested or traded securities you have heard that phrase.  Usually in an effort to tell you or explain to you how all the accumulated wisdom of the ages will be wrong THIS time.  Reminds me of the efforts of young people today to tell us this time is different with Obama in charge.  Well they are wrong and guess what the novice investors who try and tell you this time is different that a total collapse is coming or that the end of the world is near are wrong too. 

People and generations follow almost predictable courses. Time and again human nature being what it is has not and will not change.  Humans have emotions and needs and those traits pull them back to the same path each time.  As they way the market is driven by fear or greed.  The key is to be on the opposite side of those emotions when others are on one side.  Yes darn hard to do that.  Frankly however sometimes the best path is to do absolutely nothing and ride the wave. This just happens to be one of those times. 

Today is a perfect example we looked and researched and tried to find a trade to make this morning. Facebook being a prime example as it was getting the crap beat out of it for two days now.  Down a bunch of points and looking all the way a value buy.  But the PE is still ultra high and the price now down enough to really make a difference.  The other point to make is looking at the option chains there is just nothing enticing there either which tells us someone else see the same thing we do.  The market can be smart and when it is you just sit back and ride the gains and smile. 

We are fully invested and fully positioned in our trading portfolio and intend and stay that way.  We loaded up real good during the latest stock market sell off and are enjoying those gains right now.  This political economy and financial engineering is going right on for at least two more years.  Saddle up with extra contributions to your retirement plans in mega cap stocks.  If you are buying individual stocks buy mega cap stocks too.   The insurance companies look strong here and are reporting blow out earnings this week just as I suggested several times before and even after moving up are still undervalued. Refer back to our earlier postings for specific suggestions during the last two months. 

Be wise and do not believe it is different this time.