Long Term Investing & Dichotomy of Control

What is long term investing?

Growing your portfolio’s net worth for the future. Long term growth. We know the trajectory of SPX, NDX, DJIA for long term. It is always going UP. We don’t know if this rally at this time will be sustainable. We cannot control the market or its movements. Regardless of how irrational we believe the market to be, it will do “what it wants.”

However, we can control our emotions, reactions, and responses.

Dichotomy of Control. Know what you cannot control and what you can and then proceed. So we remain aware of what we cannot control. In this example we will say the stock market but we know we can control our actions. I prefer to use the word adjust over control. We “adjust” our reaction accordingly.

There is truly no reason for worry or fear of events we cannot control. Is there? No! So let’s come up with a game plan on what we can control and adjust our responses.

This market could be another bear market rally or a sustainable one. The macro suggests the former but let’s remain flexible and keep an open mind.

What can I do?

Trade the market in the short term. Follow price and the trend. Keep positions light. Reduced Position Sizing is always prudent. Watch the charts closely for this short term action.

Scale into long term growth positions. Fundamentals matter. I review key fundamental concepts to look for in most of my publishings. Quick recap: FCF, CASH, EPS growth, restructuring to streamline operations, innovation, strategically aligning to gain market share and potential to become sector leader, etc. There are clues from pattern recognition. We can reference history from 2000 and 2008 bears or even further back.

One quick side note: historically it looks to be too early in FED tightening cycle for bottom and sustained upside but let’s remain open minded.

Scaling into long term. Building positions over time. Slow and small.

Innovative companies come to mind.

What is the future? We head to tech. AI, data, cybersecurity, autonomous, etc.

There are some “value” growth companies out there. Some ideas:

SNOW, CRWD, ZS, SHOP, ISRG, DDOG, AMD, CROX, SMCI, ENPH, ETSY, PANW (good earnings – I reviewed it) just to name a few.

ACLS, ON, TSM, AMKR, SANM, HDSN, SMCI, CELH

SMCI is still my top pick.

NFLX has been holding up above the MAs if you believe in their growth story and being leader of streaming. They do have lots of competitors but they also have a strong foothold. Can they adapt and remain ahead of all the competitors?!

Remember investing is speculating and involves risk always. However, in order to gain we must take on some risk. Usually the more risk comes with the more gain potential.

Bios, medical. Still have commodities. I have taken profits on many as I scale in and out. SGML and SQM (lithium) I am holding.

Not BUY recommendations. Ones I am accumulating over time.

Shares and short PUTS (bullish).

I’m still remaining defensive overall. No chasing or overextending. Cheers!