A few years ago, I went to a charity fundraiser at San Francisco’s priciest jewelry store, Shreve & Co., where the well-heeled men bid for dates with the local high society beauties, dripping in diamonds and Channel No. 5.
Well fueled with champagne, I jumped into a spirited bidding war over one of the Bay Area’s premier hotties, who shall remain nameless. Suffice it to say, she has a sports stadium named after her and is now married to a venture capital titan.
The bids soared to $36,000, $37,000, $38,000. After all, it was for a good cause. But when it hit $39,000, I suddenly developed a lockjaw. Later, the sheepish winner with a severe case of buyer’s remorse came to me and offered his date back to me for $38,000. I said “no thanks.” $37,000, $36,000, $35,000? I passed.
The current altitude of the stock market reminds me of that evening. When people ask me what I do for a living, I answer, “Convincing people not to sell at market bottoms.” This is one of those times.
I realize that many of you are not hedge fund managers and that running a prop desk, mutual fund, 401k, pension fund, or day trading account has its own demands. But let me quote what my favorite Chinese general, Deng Xiaoping, once told me: “There is a time to fish, and a time to hang your nets out to dry.”
At least then, I’ll have plenty of dry powder for when the window of opportunity reopens for business. While I’m mending my nets, I’ll be building new lists of trades for you to strap on when the sun, moon, and stars align once again.
And no, I never did find out how that very expensive date went.
Time to Mend the Nets
