Protection

Good afternoon.  In light of today’s market action, I wanted to send you a quick note allay any concerns you may have.  I will write a brief note below, but wanted to let you know that we are fully in cash and have been for roughly a week now.  So if the market continues to tumble, take comfort in knowing that your money is safe.

I don’t know how closely you follow the stock market’s daily action, but I’m certain you will hear about it on the news tonight.    Today’s market action was abysmal closing with roughly a 2.5% loss for the day, combined with yesterday’s 1.2%+ loss.

When market’s fall, they fall fast because fear is a greater emotion than greed … and fear creates panic … which is what we are seeing today.

What is most interesting today is how there literally is no safe place (besides cash) for your investing dollars. 

intermediate term bonds are down around 1.8% for the week (1% loss today alone)

International Markets are all down between 2% and 4% as well (china -2.77%, Germany -3.28%, France -3.66%, Hong Kong -2.88%, Italy -3.09%

Gold even made a 2.5 year low … down over 5%

As you know, on June 5^th I sent an email (written below) that we were taking defensive action and slowly moving out of the market.  This process has continued and we were fully out of the market, 100% in the safety of cash on 6/13/13 (exactly one week ago).

In my previous email I wrote about the importance of the next rally attempt to identify the strength or lack thereof in the market’s internals.  The key question a rebound rally attempts to answer is … are people looking at this short term dip as a buying opportunity (buying stocks cheaper than they were a week ago), OR are they staying out of the market and not buying anything (implying a much more aggressive drop is forthcoming).  In this case, we have had two relatively pathetic rally attempts in June, culminating obviously in what we see today.

In any case, as always I am watching our investments very closely and letting the market data guide our decision process.  If things settle down, we could be back in the market as early as next week, but we will only do so if the market is truly flashing healthy signals.  As you know, I only two rules at Resnn … 1) Always, always, always minimize risk, preserving your investment is the most important and 2) let’s make money. 

Protection of your investments will always be my number one priority.

Please feel free to call me to discuss any financial matters … my door is always open.

Hope you have a wonderful weekend … sleep well knowing that we have your investment safe.