What David Tepper (Billionaire) Just Said

[View this email in your browser]( As we have all been experiencing firsthand, markets, where the Fed is tightening, are challenging. For many, that may be the understatement of the century. One of the reasons that this kind of market is so difficult is because, for the past 13 years, market participants have been used to outsides and historically high gains. While individual stocks like Apple, Altria, Amazon, or Nvidia have returned 1000%+ returns since 2009, the index has also had quite frankly insane returns. For example, since 1900, the index on average returns about 7% per year. Since 2009, the S&P 500 has returned on average 15%, doubling the century average, while the Nasdaq has returned 21% per year, tripling the century average. To put it bluntly, market participants are very used to double and triple the average returns. While this is wonderful and the money for many has become life-changing, there is one large negative that has come from over a decade of double to triple the normal returns...unrealistic expectations. It's not that traders have unrealistic expectations in terms of returns, they have unrealistic expectations about when the push on the gas and when to pump the brakes. Up until the day after Thanksgiving 2021, quite frankly there was never a time when the brakes needed to be pumped. But what happens is, we get into a completely different market, and after over ten years of habits being formed, like: - expecting to always have outside the norm performance - expecting to always be right in the market - expecting to always be frequently trading because what didn't work until November 2021? Most of you know I despise financial media. I think 95% of the analysts on financial media are not great. Most of you also know that I do not care for Jim Cramer very much as he flip-flops basically every hour depending on if people are being nice or mean to him on Twitter. However, I was sent a video today with Jim Cramer speaking on CNBC this morning. He was asked about the PPI number that came out this morning (I have no idea what PPI even is). There is a 15-second clip that is critical to understand. [Here is the clip (watch between 30 seconds and 45 seconds.]( Last night, Jim Cramer spoke to David Tepper, the billionaire hedge fund manager that has beat the index every year for the past 20 years, and who now owns the Carolina Panthers. Here is what David Tepper, one of the top 3 investors in the world, told Jim Cramer. "Jim, I just gotta remind you again, this is not yet the time to make money. This is time to not lose money." Tepper, a billionaire, a top 3 investor alive today, I would argue has realistic expectations. He knows this is a different market. He knows the things he was doing last year will not work now. He acknowledges that, and instead of getting overly aggressive in this kind of a market, he is being more conservative. I am not recommending to anyone don't try to make money, but here is what I am saying, or really, here is what we have been saying all year. Trading the exact same way you did in the past is challenging when the market is completely different. If there is a system you are following, for example, odds are that system is at a minimum going to need an adjustment to be able to A) survive and B) thrive in this kind of a market. It's not just me saying that, it's a top 3 investor in the world billionaire David Tepper too. Personally speaking, where in the past my goals were to return between 75-100% per year, this year it's like 20%. Why? Not because I all of a sudden suck at trading, but because I understand it's a different market. I understand that adjustments need to be made. I understand that there will be likely more times when I am sidelined compared to times when I am aggressively active in the market. In fact, the only way I can get that 20% return this year is if I do exactly what I am doing. The market will not always be the way it has this year. Historically, 6 out of every 7 years in the market is an up year. Those averages have good odds of playing out over time. This year for me, as many of you have seen, is about preserving capital, being less aggressive, and not risking too much. In fact, if I were to follow every system, or strategy, or trade that I did over the past few years, always being in the market, always being aggressive, I'd probably have gotten steam rolled this year. Stay small and win more trades, Steven STONY BROOK SECURITIES LLC IS A PUBLISHER AND DOES NOT OFFER TRADING ADVICE OR RECOMMENDATIONS. ALL INFORMATION IS PROVIDED FOR EDUCATIONAL PURPOSES ONLY AND NOT AN OFFER OR A RECOMMENDATION TO TRADE FUTURES CONTRACTS, STOCKS, OPTIONS OR FOREX. GOVERNMENT REGULATIONS REQUIRE DISCLOSURE OF THE FACT THAT WHILE THE TRADING IDEAS AND TRADING METHODS SHOWN ON THIS WEBSITE MAY HAVE WORKED IN THE PAST; BUT PAST RESULTS ARE NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. WHILE THERE IS A POTENTIAL FOR PROFITS THERE IS ALSO A HUGE RISK OF LOSS. A LOSS INCURRED IN CONNECTION WITH TRADING FUTURES CONTRACTS, STOCKS, OPTIONS OR FOREX CAN BE SIGNIFICANT. YOU SHOULD THEREFORE CAREFULLY CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION SINCE ALL SPECULATIVE TRADING IS INHERENTLY RISKY AND SHOULD ONLY BE UNDERTAKEN BY INDIVIDUALS WITH ADEQUATE RISK CAPITAL. AN INVESTOR COULD POTENTIALLY LOSE ALL OR MORE THAN THE INITIAL INVESTMENT. [FULL INVESTMENT RISK DISCLOSURE]( Copyright © 2022 Steven Brooks Trading LLC, All rights reserved. Want to change how you receive these emails? You can [update your preferences]( or [unsubscribe from this list](. Questions? Contact support@stevenbrookstrading.com