Overview:

The current selloff as extreme as it appears is in our opinion a simple shakeout of weak hands.  Markets go from overbought to oversold and this is what we assume is happening.  They often get ahead of themselves, and when earnings fail to significantly beat expectations, even good stocks are sold off.

One of the reasons we step into positions is because this is not uncommon. Especially near a market high.  Take for example our Cannabis portfolio.  Those stocks have been crushed, but we have slowly been building a position.  Since the majority of our position is still in cash the pain we are taking is minimal.  Seeing we are down around 5-6% overall and have a cash stack waiting to enter, we are in a much better position than most who find themselves lunch for bears.

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