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"Patient Investor Punished, Dash For Trash, Strong Market Internals"

Bill Kort profile picture
Bill Kort


  • The above headline from CNBC's PRO service is a prime example of what the media considers premium content.
  • Beware the click bait and for heaven's sake don't spend your good money on it.
  • Where to from here?

It is amazing what the media considers premium content. The above headline from CNBC's "PRO" service is a prime example. Beware the click bait and for heaven's sake don't spend your good money on it. Where to from here?

Our headline for this post is pretty negative, save the part about "strong market internals" which brings up the rear. I'm pretty sure that was intentional. The part that lured me in was "patient investors punished." I'm a patient investor (sometimes too patient - holding the wrong stock too long) and the last couple of months have not been punishing for me. My question is "who are these patient investors?"

I came to find out that Santoli's "patient investors" were people who either sold stocks during the March panic or had sold much earlier looking for an opportunity to buy back at more reasonable prices. Because the snap back from the lows was so rapid these "patient " ones were not able to take advantage of the opportunity created by COVID19.

Let me suggest again that trading is tough

It is especially tough because of the media overload world we live in and the countless numbers of experts and pundits willing to give us their two cents about the direction of the economy and market. It is confusing to say the least. This is especially troublesome when (if you have sold) it comes to the question of when to reenter a shaky market. The savvy media knows that 'bad news sells'. This spin provides a negative bias that pushes investors away from positive action at market lows.

This is exactly what happened this time. Opinions ranged from 'we have much lower to go' or 'there will be a retest… keep your powder dry'. As usual many people sat on their hands and have missed out

This article was written by

Bill Kort profile picture
Fifty-plus years common stock investing experience. Worked forty-two years on the sell side in institutional equity sales positions with Kidder, Peabody, A. G. Edwards and Wells Fargo. My goal with Kortsessions.com is to provide a rational and a balanced counterpoint to what seems to be a constant barrage of media hype and misinformation on the markets.

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Comments (19)

Bill: As you know I like you will be patiently watching small caps and expect them to do well going forward. Thanks for your work here. - Mike
So in Feb and March the market was only looking at Feb and March but in April it started looking out to 3rd qtr and next year? What a load of crap, nice sound bite to support your thesis. Fact is that people should never panic, be aware of pullbacks and be ready to invest more. For those that are usually 90-95% invested, the pullback and recovery are meaningless.
Bill Kort profile picture
d-man, thank you for pointing out the apparent inconsistency in my analysis. I think it all boils down to this. In February and March we really did not know much about the potential threat to life and limb that COVID-19 posed. Many weren’t sure how it was transmitted exactly or how long it lives on surfaces.there were big questions about fatalities and the number of cases would present. Once it became apparent that the dire projections of fatalities, need for ventilators, etc. we’re way exaggerated .. that we had some control (masking and social distancing) The market began its focus on coming out the other side with an additional two to $3 trillion and our disposal... this is a huge fiscal tailwind on top of a very expensive monetary policy. You might want to take a look at this post from 4/11/20–“The crisis abates —yeah, right.” www.kortsessions.com/...

To most people without the perspective you seem to have this was not “ A load of crap.” thanks for checking in.

BeaBaggage profile picture
I like Mike Santoli from his Barron's days.. but he is selling ads and services now..anyone who does not do their own dd deserves what they get.
Bill Kort profile picture
Beanbaggage, yep, you were absolutely right. Thank you for checking in.

drops like the 3rd week of March are asset collecting wealth building opportunities. real basic stuff. load up on quality and wait for the rewards. since I can do it, anyone can. take some risks, learn, ask quality questions, recognize the basics.
Bill Kort profile picture
Brainleft, absolutely! A big part of this is thinking for yourself. Thank you for checking in.

YogiKait profile picture
This article is a rehash of previous articles on SA :-(
Bill Kort profile picture
YogiKait, Thank you for the comment. If you mean that I have been constructive on the market for the past seven years and a media basher, I agree 100%. The idea Is and continues to be helping people keep perspective in a media environment That is not ever not ever conducive to making money. Judging by what I read in SeekingAlpha there are many investors out there in need of perspective. You might want to check back in the archives of kortsessions.com to see how that has worked.
metameta profile picture
"The Dash for Trash"

What bothered me the most on CNBC last few weeks was Jim Cramer when they asked him do you feel left behind holding your covid-immune stocks?

He was apoplectic saying people are just stupid buying that value trade just stupid.

Like the only stocks in the world that have permission to go up in value are all his 80-300 times PE tech stocks?
Bill Kort profile picture
metameta, thanks for your comment. Cramer has some good ideas and some bad ideas. For example back in October 2008 he told the whole world on the today show as well as his own show and the nightly news, “If you need the money anytime in the next five years you should sell now.” The Dow Jones industrial average hit a low that month at around 7600. I wonder how many people took that advice and never got back in. I also wonder What he was saying at the top of the tech bubble.I don’t know when this trade into the top 80 or 300 large cap stocks will end but it will end. Also it’s not just the value stocks that have been left behind there are tons of smaller cap, potentially growthier names that Have been left behind. IMHO I think it’s time to do some real investing instead of indexing.

I no longer bother with MarketWatch, which was all about a another huge jag down after March 23. Reading them was a money loser. The sky was going to fall every day for them for two full months. Heavy gloom, heavy doom. Meanwhile....
Unsubscribing soon:
There were also SA writers that were writing much lower levels to come at the March bottom.You could cut the negative sentiment with a knife around that time.Result? Over a 35% rally.
I saw the same thing at the 2009 bottom, "equities heading for MUCH lower levels".
It seems the truth is always a step ahead of the "common narratives" ("retest lows/2nd wave coming/etc"...).
Actually those narratives also spread as a kind of a mental virus.
Don't know what exactly the truth is, but there's a good chance it's probably something else (or something more) than just that.
P.S. Been sifting through some of that "trash" as well lately :)
Bill Kort profile picture
n00b, thank you for checking in. What I do in kortsessions is challenge the common wisdom presented daily in the media. This common wisdom never appears to actually hold the key to any truths. Perspective is gained by looking back at what has happened as opposed to dividning the future. The prediction business is very tough. Good luck on your dumpster diving. I really do believe there are a lot of opportunities out there because of the institutional chase for performance. They all continue to chase in on the same names.


Not much left in the trash... probably best to be patient 😂
always too late lmao
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