Today I got this email from Jon:
Will you be continuing to post on the current market and accumulation? With a ~20%+ move in market from the lows in such a short time and many stocks well above the 30MA how well is accumulation going to work in this case? It looks like you will talk more about FACs for entry's, or just back to trade vs consume?...
Can you comment on if you think the market will likely be rangebound or just start the climb back to the highs we've seen twice in the last 8 yrs or so. If your new book isn't out until Sept, I suspect you're not expecting it start getting overpriced between now and then?
The market price is just a general guideline to whether we can expect to find Rule #1 businesses on sale. Right now the answer is yes.
As the market climbs there will still be "load up the truck" deals that we can accumulate (I'm starting to call it "stockpile"). The higher it gets, the more I want to trade it.
Stockpiling is a great strategy for everyone when the great businesses are really cheap. Trading is hot when the market is moving up aggressively. We're not back to that by a long shot. Stockpiling is still the way to go unless you are very careful as a trader. This thing can drop the bottom out on any major bad news, but the upside is very limited. NOT a great time to be trading long on the trend.
Now go play.