Speaking of retiring, my retirement account is sitting at -2.5% YTD. I always thought this year was going to be flat in a sideways range or down. Comparatively speaking, that’s better than the general market, the NASDAQ excepted. Klarman says not to compare your performance to the market, i.e. don’t put too much stock in relative performance – think absolute performance, and he has a point. You should always judge an investment on its own merit. I hate being down, even if better than the market as a whole. But since my time horizon is long, I’m still feeling great about the investments that I’m holding. I do have a large position in cash and that’s OK. But if things are going to go south, I hope they go big. I want to do some bargain hunting. Analysts are calling for a 10% correction, but what do they know? I’m hoping for a little panic so I can pick up stuff cheap. Not a big, herd wide panic that will put a halt quickly to everything, but just enough so quality issues become undervalue enough that they’re a good pickup.
Once recent pickup for me has been Target based on the same rationale. The whole credit hacking debacle really did a number on Target. I believe their response is right on the money. They didn’t shy away or make any excuses and accepted responsibility. The exposure for them should be manageable. Yet the market beat them up pretty bad, putting them at a new 52 week low. Even if they can get halfway back, it’ll be a nice return. In the meantime, I’ll collect my dividends and hold onto a quality retailing company.