Selling is real

In this mornings edition of investingwithfaith.com that you received one hour before the market opened I placed this Poll:

Did I or do I have a magic crystal ball? No, no I do not. What I do know however is what I shared yesterday and this morning both is that Historically, September is the hardest month of the year for stocks. If todays price action is any indication this Sept will be no different.

Many investors that subscribe to newsletters do so looking for fresh ideas of stocks to buy. And that’s good, because that’s what many stock services strive to provide. But yelling buy buy buy! during a bloodbath has never served anyone well. Rotation is something that I have been mentioning here for almost 2 weeks now, and no not just because of the date on the calendar.

For those that are “Risk Adverse” there are always new trades to be found, in any market. But those can potentially turn on you just as fast as they came into play.

“Safety Plays” also come back into view. We like those. And a few emerged today that won’t break you if the market did a 180 right after you entered.

One defensive play that faired well today was PG. Another one in it’s space is JNJ. We are fans of PG’s chart a little bit more. One thing to note is that PG is at the top range of a long term channel here, should the market stabilize we could see a pullback. Even with that there’s no denying it’s strong trend.

It’s times like these that I am reminded of legendary investor Ray Dalio. If your not familiar with Mr Dalio, he is a co-chief investment officer of the worlds largest hedge fund, Bridgewater Associates. This quote of his is not only all so true, but one of my personal favorites.

Invest wisely, live charitably and be well

Brother Bill