Whoahhhh, easy now. Let’s be mature about this, Hewlett-Packard. I know, I know. You don’t have to send me the link. I remember all the great things I said about you less than one month ago. But we need to talk.
You see, I admit I said all those things about you. I looked right in your eyes and complemented you on your tiny forward P/E multiple and your $100 billion revenue. And those things came straight from the heart! I always did love those things about you. And you should feel good about them still.
The thing is… it’s not you; it’s me.
I just have so much stuff going on in my portfolio right now. Between my long positions in Apple and Bank of America… and Wells Fargo making new all-time highs today, let’s be honest: I wasn’t giving you the attention you deserved.
And if you really want to know the truth about why I’m ending our relationship, it’s because I’m scared. I’m scared of making such a strong commitment to this stock market right now. With the CAPE now above 26 and the S&P 500 at all-time highs, I just don’t feel like I’m in a place in my life right now where I can stay loyal to this bull market.
It’s nothing personal, Hewlett-Packard. I just want the cash. I’m now at almost 50% cash in my account. It makes me feel better-prepared just in case this Alibaba IPO tomorrow does in fact mark the top in the market, as some have feared.
Don’t get me wrong: I don’t believe a market correction is imminent. But I’m just not sure. And I can’t carry on with this long relationship if I’m not sure, you know?
There are plenty of other shareholders out there who will give you the buying you deserve. And we probably should have known this wasn’t going to work out after the first time I sold you in January. But I just couldn’t stay away from that gorgeous valuation…
And we had some good times together, didn’t we? Remember that small profit we made together the first time I bought you? And the profit was even larger this time! We were good together. And who knows what the future holds. If you keep making money and keep that price low, maybe our paths will cross again someday.
Best of luck, Hewlett-Packard. From the bottom of my heart.
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