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I remember back in 2000 how I just watched my assets shrink on a daily basis, stuck in disbelief as an unrelenting market did permanent damage to me. It would take me more than 3 years to rebuild my business and I never forgot those lessons, until about 8 weeks ago.

I sold almost everything today and now sit with 90% cash. Whether the market rallies from here, or if I marked the bottom in stocks, that is immaterial to me. This is a mountainous fuck up on my behalf and it will take me a long, long time to not only recover from this, but regain the confidence to make it back. As the saying goes, “scared money makes no money.”

My year to date losses were stopped out at about -32%, that’s another -13% for this week alone. Clearly, the beta was too high. It’s obvious that I should have sold long ago. Yes, I should have done a million things differently. I’ve managed around each and every market crises almost without flaw, until now. We all have our comeuppance, at some time or another. Today I got mines.

Volatility. Either a curse or a blessing.

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