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Going into December, I thought there was enough chance of a strong end of the year rally/ January effect rally to make taking a risk on small company stocks a reasonable call. Even though the entire market looked shaky in the longer term. (That is in 2019.)

With the break down in the Standard & Poor’s 500 yesterday and today to below the February and April 2018 lows at 2581, I no longer think the possible reward of this trade justifies the risk.

There’s a good chance that the current bear market in many technology stocks and sectors such as energy, technology, and financials is likely to get significantly worse before it gets better.

So it’s time to recognize my mistake and sell shares of the iShares Russell 2000 ETF (IWM) out of my Jubak Picks Portfolio today. The position is down 14.87% since I added it to this portfolio on November 6, 2018.