Slow Down And Process Information

 Very quick post today.

The charted fund is in my universe of funds I watch regularly. It's an alternative strategy fund that has had a very good run since changing strategies last summer. During the April panic it gave back almost the entire gain and then recovered just about all of it back pretty quickly. 

The strategy was no better or worse on April 7th than it was last summer than it is right now. In the teeth of a panic, it can be very difficult to just do nothing but recognizing a market panic for what it is can help to avoid going along with everyone else's panic when the right this is just waiting it out. 

In the fire department, I say all the time to slow down and process information. This relates to scene safety, deriving tactics and providing patient care. The chart above is a great example from investing to do the same. In the middle of an obvious panic, a 10% decline for some strategy that is not intended to be a horizontal line that tilts upward is not evidence of a problem. Slowing down and processing information would have helped avoid succumbing to the emotion unfolding in markets back then even if the panic took much longer to recover. 

We had a call for a lightning caused tree fire this morning. I drove the truck to the left which is our Engine 86. Finally getting to the scene involved several 5 point turns and driving up a very narrow road. It was fun but challenging.

The information, analysis and opinions expressed herein reflect our judgment and opinions as of the date of writing and are subject to change at any time without notice. They are not intended to constitute legal, tax, securities or investment advice or a recommended course of action in any given situation.