Continuing our eariler post on Eric Peters' latest weekly observations, here is a somewhat whimsical follow up, in which the One River Asset Management observes his life as 4 "market" anecdotes.
Anecdote: My life in four acts:
Act I: Coffee with my wife [building a portfolio to withstand known unknowns]
Eric: I ordered a coop that can house 8-15 chickens.
Mara: Why so big? I swore we’ll never have more than four chickens at a time.
Eric: I’m trusting my instincts on this.
Act II: Fresh from the farm [recognizing signs of an impending bear market]
Mara: We bought six chickens!
Eric: Six? I thought we’d never have more than four?
Mara: The farmer wouldn’t sell less than six.
Eric: But you were at the farm, surely you could’ve bought six and given two back?
Mara and Kiddies [glancing at one another, bewildered]: That thought never crossed our minds.
Act III: Dinner table chatter [unexpected correlations blow up quantitative risk models]
Olivia: We need to get another dog daddy. [enthusiastic nodding all around the table]
Eric: Are you all crazy, we just got six chickens?
Olivia: Exactly! With six chickens for us to love, Shackleton is lonely. He needs a companion.
Mara and Kiddies: [a clamor of incoherent arguments in favor of adding to our Golden Retriever long; indistinguishable from a panel of CNBC “buy the dip” talking heads]
Act IV: Text exchange [trapped, no market liquidity, coming to terms with a runaway loss]
Mara text: Look at these pictures!!! [embedded photo of three Golden Retriever puppies]
Eric text: I lost control of my life the day I met you, but am only beginning to realize it now. Did you buy one? Or all three?
Mara text: All three!
Eric text: Perfect, you know how much I’d hate to separate a litter.
Mara text: Call me.
Prologue: My life [delusions of a highly improbable event that gets you back to flat]
In the end, Mara bought one puppy. Which seems a more manageable position than three. So we all somehow feel like winners. My life is chaos, for better or worse. Wife, four kids, two dogs, six chickens, turtles, frogs.
And I frequently drift off, praying a pack of coyotes stroll in one stormy night, getting me back to flat.
For those unfamiliar with Eric Peters, here is a quick, 6minute breakdown of his investment approach.