Indeed Bill, indeed… timing and sizing in this business are everything.
As the winners and losers on Wall Street continue to reveal themselves, the New Reality will perpetuate investor demand for transparency, accountability, and trust.
The Liquidity Crisis of October/November of 2008 was marked to market by a SP500 closing price on November 20th of 752. While that freak-out low is now -15.4% lower than Friday’s close, this doesn’t mean that those land locked in their own Illiquidity Crisis (private equity, concentrated activists, etc…) wont continue to fear monger investors, blaming their timing and sizing mistakes on the narrative fallacy of a “Depression” and the like…
If there are two factors we want you to own in your portfolios, they are: Liquidity and Duration. Don’t be locked into illiquid investments, and don’t let your money manager be held hostage to the duration that other investors force upon them.
Keith R. McCullough
CEO / Chief Investment Officer