So many people are trying to focus on calling the direction of the market, they are missing out on the incredible dispersion of values in the market right now. So, let me tell you a story of 1998-2002.

I started out managing money professionally and being a contrarian at heart, I focused on small cap value that wasn't tech. At first I looked silly, and despite having a strong 1999, missing out on the mania, but when the market collapsed, suddenly my oil tubular stock was gold.

As was my small cap value spinoff that traded for cash. And a dozen or so other companies that were trading at absurd valuations and offered tons of optionality.

I went on to compound at 25% a year for four years. And eventually thought I was a golden god (only to learn otherwise in 2003 and run into personal and professional disappointment).

So, this market reminds me a lot of 1998. Long Term Capital Management blew up, the market plunged, the Fed pumped all kinds of liquidity into the system and we had a mania.

But you didn't have to participate in the mania per se. You could hunker down do due diligence and focus on where the value was. And the next couple of years were some of the best risk/reward of any time I have seen. There is a strong chance that we are entering a similar period.

No one has mentioned the 1998 LTCM period as a comparable to this one, but it might be an apt comparison with the SaaS and big tech selling for extremely high valuations and boring small cap value sell at incredible bargains. This is how I'm investing in this market.

Last note, I could very well be wrong and I'm wrong often, but at these values, I can afford to be wrong quite a bit and should still win.