1. The way to make money is through capital preservation and home runs. It's about how much money you can make when you are right and how much money you can lose when you are wrong. Put all your eggs in one basket and look after your basket carefully. But that idea won't come every day.
2. Valuation tells you more about risk, where market could go when a catalyst hits, not the direction.
3. Liquidity is very important when it comes to the timing and risk management. Liquidity and central banks move the markets, not the earnings.
4. Best market environment for equities is steady boring growth. If the market is on fire, FED will not be your friend any more.
5. Certain events may not be positive, but market can go up on it -- if it's priced in.
6. Always look to the future, present earnings tell you nothing.
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