Not Every Dip Deserves a Buy

The last week in investing has been a time where I have felt paralyzed at times even though I've got my wish list of companies I would buy if they go on sale. Mr. Market has been in a foul mood lately and has been marking down every company, but I have no clue what President Trump will do. Depending on his actions, Mr. Market could offer another fire sale or slap a premium on everything overnight.

I can see him prolonging this trade war with China because, from everything I observe, the man is a textbook narcissist. That makes acknowledging wrongdoing nearly impossible. Your ego feels better when you blame others. And when you start a negotiation from a position of strength, showing any form of weakness becomes a loss of face. This is not a recipe for cool, calm decision making. This is more about winning and being perceived as correct, than doing what benefits the most Americans.

Secondly, I don't see the health of the equity market as a priority for this administration, so I'm not willing to buy anything, even though the market has nearly reached bear territory (down 20% from its peak), because of the sheer uncertainty around what the future holds. Things could resolve overnight or they could spiral further based entirely on one man’s next move. I’m not willing to bet on that.

Instead, I’m sitting in cash. We sold off some of our big, long-term winners ahead of the tariff news, so we’re in a good position. Not because we timed the market perfectly, but because we took gains when things were strong. That gives us the flexibility to be patient now, even when the headlines are flashing red and the “deals” look tempting.

I’m staying tuned in. Watching CNBC. Reading between the lines. And more importantly, I’m watching the signals that matter most to me:

I’m not trying to catch the bottom or call the next move. I’m just trying to stay clear-headed. And right now, the clearest thing I can say is: it’s okay to wait.

Sometimes not doing something is the move.