A new week and we have another round of “What Might Happen Next?” It is a fun game, but to play it well, one must wield a certain faith, one must possess a certain fortitude, and one must approach the whole shebang with equanimity. My faith is all about the economic recovery and my ability to see the big picture, which gives me the best shot at seeing the bullet before it strikes. My fortitude derives from my self-confidence. I believe in my abilities. Equanimity, how does that fit in?
Just this morning I checked out a trade that I made last week, and the stock was up another $7 (33%) from my exit point. This I where the equanimity comes in – when one sees that, one must accept that any trade is over when you exit. It is so cliché, but the reality is that what happens after you exit is “water under the bridge.” Since you cannot reclaim it, or make it come back, you just accept that it has passed. The impetus for this philosophical reflection is my initial reaction to seeing the rising stock. I felt regret, regret that I put my stop too near the “scalping” point. I felt just a bit angry for the same reason, which means I was mad with myself. However, these emotions lasted just a minute, which one cannot help, unless one is an automaton or ice cold emotionally. My initial reaction ended when I reached for some equanimity to calm myself, which gave me the “space” to remember the reasons I placed the stop in the first place, knowing full well I might get scalped (fortitude). Finally, I have faith that the economy is, and will continue, moving forward, which means more opportunity to make up whatever the difference in then and now. Just what you wanted, eh? – A little philosophical reflection on a Monday?
Jumping elsewhere … The excerpt below is a follow up to my discussion about China needing to import more goods to satisfy its rapid growth and demanding middle class.
BEIJING, Feb 14 (Reuters) – China’s trade surplus fell to its lowest in nine months in January after imports surged, supporting the government’s case ahead of a G20 meeting that it is doing enough to spur domestic demand without speeding up currency appreciation. The trade surplus shrank to $6.5 billion from $13.1 billion in December, well short of forecasts for a $10.7 billion gap.
Reading the above strengthens my faith that “things” will eventually be fine, that history has shown us we humans always strive to make more, more of whatever it is that keeps us going. In the case of the global economy, it is money, and the only way that will happen is if countries continue to find ways to curb the excesses and increase economic development, which means more production, which means more jobs, which means more consumption. Historically, this is as it always has been, and I have no reason to suspect it will be any different in today’s world.
Yes, each week starts with same reality – the global economy is healthier, but this only means the doctors have moved it from ICU to the general ward. This means we should always be on the lookout for “What Might Happen Next?” This game never ends, but it always provides enough entertainment to keep us all playing.
Trade in the day – Invest in your life
