Pecos Wine and Rattlesnake Stew
I noticed this morning that CAPS has a new leader, luvb2b. If memory serves, and now that I'm AARP material serving is not always what it does, it seems to me that yesterday there was a different CAPS leader. If that's true, I apologize for not remembering just who you were.
Where was I? Oh, so back to the new CAPS leader. First of all, congratulations. Being Numero Uno among all of the outstanding investors playing CAPS is no small achievement. I certainly hope that your reign as CAPS King is long and storied!
Which brings me, stumbling I admit, to my original thought. I took a peek at luvb2b's CAPS picks, I mean if I can find a bargain...why not? I can tell you I was floored. Out of 149 active picks, 137 are picked to Underperform the S&P 500.
Admittedly, I was stunned when I saw that. Don't ask me why, I just was. There just seemed to be something wrong with that, something disingenuous, something very...CAPS.
I mean here was the CAPS leader with 92% of his picks set as underperform. It just struck me as strange. Of course in light of the way the markets have been of late, and the way they will probably continue to behave, our leader's timing seems exact. Good for him.
But I thought the idea behind CAPS was to make us better investors? I mean that's what it says on the CAPS Help screen, that the premise is..."Working together, we can improve our investing results."
I'm not saying that we aren't all working together, I mean we are all apart of CAPS and we are all letting each other see what stocks we've chosen, and in some instances we've even allowed other players to see WHY we've chosen a specific stock. So in the purest sense we are all working together to improve our investing results.
But as we say in Texas, this ain't my first rodeo. I know that there are a good number of younger investors out there that are seeing players like luvb2b and thinking they can transfer his CAPS investing strategy to the real world.
The fact of the matter is...you can't. Certainly you could pick 147 stocks and then short 92% of them. And for that matter, you may even do quite well, for a day or two. But at some point, an investment strategy outside of CAPS, like so many strategies that seem to end up leading the CAPS pack, simply won't work over the longer term.
Heck, just the trade charges would seem to negate any potential profits!
Of course we would all like to stand proudly at the top of the CAPS heap, even it were for one day. I know I would strut around with my chaps on, bull whip in hand...oh sorry.
So all I'm asking folks to do is enjoy playing CAPS. Enjoy taking with you the thoughts of other investors, enjoy leaving your own thoughts so that investors might take them to the places they travel.
But above all else...above all else...above...
Well ain't that fine howdo ma'am...I forgot where I was going with this.