How’s Your Powder?

Posted on September 14, 2021 by Scott Shuda

With CNBC beating the drums hour after hour that many on Wall Street expect a correction in the near term, Kuppy provides some comfort to the idea of holding some powder dry.

Investing is a game of keeping powder dry and waiting for layups. So many investors miss this lesson. They stay fully invested in middling situations for various reasons—often mental…

Over the last few days of August, I pivoted from negligible uranium exposure to a position maximum. Having swung large exposures around for two decades, I’m certainly used to rapidly pivoting. What surprised me, was my ability to max out uranium without making any sales to fund it. Instead, I had the liquidity just sitting there for the opportunity. 

I always have some dry powder in my portfolio. I know the pros trade on margin, leveraging their positions and theoretically their gains. But this means they also have to run a short book, to protect themselves from potential whipsaws. I’ve tried the short game and find it very difficult to change from wearing my “long” hat to a “short” hat.

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