Thankfully it's only price that pays anyone

November 6, 2022

The only way anyone gets paid around here is to sell things at higher prices than where we buy them.

And not necessarily in that order.

Do you have a better way?

I've been doing this for 20 years and I have never seen any other way to profit.

You might enjoy pretending to know "why" a stock or group of stocks may be moving. But the market doesn't pay you to pretend to know why.

The market only pays us when we sell things at higher prices than where we buy them.

And this is all so funny to me, because I constantly see so many people focusing all their attention on everything BUT price.

That never made any sense to me.

If the only thing that pays us is price, then why wouldn't our process both begin and end with the study of price?

Why on earth would we spend any time at all worrying about anything else?

Be especially careful with people who tell you, "Don't fight the fed". They're probably confused, just lying to you or making up narratives to justify their own misbehavior.

Here's why, in case you still don't know the truth.

We've been buying the winners. And it's working.

Look at Chevron and Exxon, for example, both going out at new all-time highs this week:

And while we've been pounding the table about Energy around here for a while, there are other areas working too.

More and more industry groups are joining the list of leaders.

Look at the U.S. Insurance Index just a few pennies from new all-time highs:

So think about it like this.

First there was strength in Energy.

Now you're seeing it in Financials.

Then came the Industrials.

Look at Aerospace & Defense also just a few pennies from new all-time highs:

There are a lot of stocks and sectors doing well.

Take a look at Monster Beverage flirting with breaking out of a huge base:

We can do this all day if you want.

Here's T-Mobile, a stock that just went out at new all-time monthly closing highs

They keep telling me that its a bear market, but I keep seeing more and more stocks breaking out to new highs.

"But those are defensive sectors, JC. The stocks most people own are going down...."

Well first of all, I couldn't care less what other people own. If some investors are losing money because they own too many growth stocks, that isn't my problem.

Is First Solar defense?

Because it's hitting new 10-year highs: