Goodbye 2017, Hello 2018
There it is. We are done with 2017 and are now into 2018. An end to a tumultuous year in every way and the beginning of another year that I think will be equally tumultuous in every way.
Last week, the major indices finished on a sour note as the noise in techland got even more deafening. Combine the noise shouting with thin trading volumes and techland was on sale pretty much the entire week. Some will say, not on sale but being tossed out at any price. So be it. On sale or thrown away in the rubbish heap, techland stocks are now very cheap and the China basket is even cheaper as earnings for the entire sector have been trending higher while stock prices in techland have been trending lower. Opportunity is knocking yet again in the sector.
The jaysomaney.com account finished 2017 with a gain of 189.8% and an ending balance of $772,946, after finishing 2016 with a gain of 168.4%. The account was funded with $100,000 on February 1, 2016.
However impressive that may be (or may not be for some), I am not pleased with the fact that the last month of 2017 was a big drag on performance for the account. Ending the year on a stumbling note is not how I would have liked to have ended the year. That will not happen again.
I do expect 2018 will continue to be dominated by fake news and increased volatility given the fact that the indices are hovering near all-time highs. Not just at home but all over the world as well. Like 2017 and 2016, 2018 will be a year for stock picking and timing. The days of throwing a dart at a bunch of names are long gone and with that so is the easy money.
I keep stressing that our business is the toughest in the world bar none, and nothing that transpired in 2017 has changed that fact. Actually, it has been proven yet again if one were to look at technology funds out there, most of which have barely beaten the indices.
The S&P was up 18.4%
Nasdaq was higher by 27.2%
Dow up 24.4%
The jaysomaney.com account ended 2017 up 190% on the year and the ending liquidation value ( or the beginning value for 2018) is now at $772, 946. Not too shabby given the fact that I funded the account with $100,000 23 months ago (Feb 2016).
The account took a pummelling in December thanks to tech being hated/used as an ATM yet again all month, and China aversion also picking up steam as the last month went on. Things in techland were especially torrid on the last week of 2017 with fake news in the sector rising to rabid pitch.
Be that as it may, I am really upset at how the year ended for the account and it shall never happen again. That is my New year Resolution for 2018.
The fake news will continue this year and beyond as long as it continues having an effect. The only way to combat fake news is to stop reacting to it and given how irrational/manipulated our markets are, I don't see that happening anytime soon.
One thing is for certain; I have my work cut out for me in the year ahead and our business has become even harder than it has ever been. To that I say with the utmost humility, "Chuckles, bring it on."
Nothing is easy in our business but that is and has always been our playing field.
We have had a great ride the last two years and I am looking forward to another great (maybe even greater) ride alongside each and every one of you in 2018.
Happy New Year to you and yours and I wish each and every one of you all the happiness and success in the world for 2018 and beyond.