Commentary for week ending 03/05/2022

With all of the events happening in Ukraine, my comments will be somewhat brief.  


I want to remind you that panic is not a strategy.  Baron Rothschild, an 18th-century British nobleman and member of the Rothschild banking family, is credited with this saying:  “Buy when there’s blood in the streets, even if the blood is your own.”  This is an important reminder, especially if you are a 401k and/or IRA investor building your portfolio.  So continue to make regular investments in the market and don’t worry.  And if you are following my 90/10 rule on allocation, put the 10% cash to use!  


Here’s another story I recently heard that may give you some comfort.  Art Cashin, familiar to those of you who watch CNBC, told a story when he was a young man in 1962 during the Cuban missile crisis.  A very young Art Cashin thought he was being smart by buying stock puts, a bet the market would drop.   He told that to his mentor who said “When you hear the missiles are flying, you buy stocks you don’t sell them.”  Cashin replied:  “You buy them? Why would you buy them if the missiles are flying?”.  The mentor said “You buy them because if you’re wrong, the trade will never clear. We’ll all be dead!”


So, bottom line, stay put, and if you have some spare cash, nibble a bit on bargains. For the Growth fund, I think that Amazon is severely undervalued now and should be accumulated.  On the income fund, note that my recommendation on First Horizon has proven very lucrative as it is to be acquired by TD Bank for $13 Billion.  So take your profits in this one.  I will find a replacement soon for it.  As for the other stocks in the Income fund, just sit back and collect your dividends.  And as I said, Merck is undervalued and should be accumulated.


Well, that’s all for now.  Here’s hoping that the Ukrainian crisis is resolved somehow.  And all the best to you and your families.


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