SPY +6.7% ytd, QQQ +15.2%
My trading account +4.6%. Not good, but not a disaster. Several of my significant positions such as AMZN, BRKB, have underperformed. MSFT, META, aren’t doing well. I maintain a healthy cash reserve, so the less than market return might be as expected. Lower risk often translates to lower returns.
My options trading has mostly been selling delta adjusted calls. During the massive rally off the 2026 lows, I rolled up and out, taking a modest loss each time. I made some lunch money trading MU and SPCX options, one lots for tiny gains as compared to the portfolio, but there are no real trading highlights for 2026.
Some commentators are saying that AI is the biggest invention in our lifetimes. Bigger than the Internet, bigger than moon rockets. Some say bigger than the steam engine or electricity. On the other side Chicken Little is always with us. There was a recent best selling book about the coming stock market crash. The SPCX IPO is pointed to as a sign of a clear top. Certain stocks such as MU have already had impressive gains.
As always predictions are for entertainment. Ride is likely to be bumpy. General purpose robotics, and AI are going to revolutionize many industries. Old line companies such as CAT and GM are touting new efficiencies. I no longer believe that buy the dip is a safe strategy. If a person is already wealthy, it makes a lot of sense to take some off the table. Timing an ultimate top is a low percentage game. A few will be correct, but most that try will fail. I have never been a nimble trader so that game has little appeal to me.
As an aside America is about to celebrate its 250th birthday. While the country has its flaws, we are extremely blessed to be Americans. This year, I’ve spent less time on the stock market and more with the Bible. Let me leave you with
from Numbers 6:24-26
May the LORD bless you and protect you.
May the LORD smile on you and be gracious to you.
May the LORD show you his favor and give you his peace.
