It's Not Time To Sell, It's Time To 'Be Right And Sit Tight'

 |  Includes: DIA, QQQ, SPY
by: Steve Sjuggerud

"I have to give you a compliment," a reader said to me at our recent Los Angeles S&A Conference Series event.

I stopped to listen, of course.

"I don't like you, Steve," he told me. "I mean, I really don't like you... I would much rather read Porter's writing. I believe down in my toes what Porter [Stansberry] says is true. Porter and I are on the same page."

I wasn't exactly sure how that was a compliment.

"The thing is, Steve, you have made me a LOT of money. And you keep making me a lot of money. I don't want to follow your ideas. But I have to... because you keep making me money. So, thank you."

Well, it wasn't the most gushing compliment ever... but hey, at least he was honest.

The truth is, Porter's ideas and mine are not that far apart...

Porter and I fully agree that our country's current fiscal path is completely unsustainable.

I am a numbers guy. And the numbers are scary...

Based on the latest numbers from the Congressional Budget Office (a non-partisan government entity), ALL of Washington's tax revenue will be eaten up by two things within 16 years:

  1. entitlement spending (that's health care and social security), and...
  2. interest on the national debt.

Take a look:

The trend doesn't slow down or reverse in 16 years' time either... Our current entitlement promises continue... Without enough tax revenue to pay these two things alone, our national debt will have to soar.

So Porter and I are on the same page, for sure. The only question is timing...

I believe asset prices can still go up - possibly a lot - before it's time to batten down the hatches. I have said this for a while. But I am sitting tight.

"Men who can both be right and sit tight are uncommon," Jesse Livermore explained in the classic 1923 investing book Reminiscences of a Stock Operator, explaining how to REALLY make money in the markets.

"It was never my thinking that made the big money for me," Livermore explained. "It always was my sitting."

I wrote about this same idea four years ago here in DailyWealth. I strongly urge you to go back and read it, right here.

I was sitting tight in 2010. And I am sitting tight today.

The easiest thing for me to do would be to join the bears...

I could claim credit for a brilliant call... For getting onboard this great bull market extremely early, and for staying onboard for five years, capturing a huge amount of profits.

I could rest on my laurels, and join the chorus of bears, pointing out the obvious problems in our economy that will have to come home to roost someday. Then readers like the one at the beginning of this letter might finally like me. Life would be good!

So why don't I just say "sell" now, and take credit for a great five-year bull market call?

Because I don't believe it's time to "sell" yet.

I believe it's STILL time to "be right and sit tight."

I believe we have more gains to come. I think we can make a lot more money together.

You may "not like" me because of that if you want... I can handle it. Regardless, I will keep calling it like I see it. For now, sit tight...

Disclosure: No positions