Keep hands and feet inside the car until the ride has come to a complete stop.
First, nobody buy or sell any stock based on my advice. Second, I have been out of the market since last October and will be getting in shortly. I agree that there are deals to be had. Third, there are other shoes to drop, and we can still see some large, downward swings. It would not surprise me at all to see the DJIA drop back down below 9,000, even 8,000. I’ll write more about why the market is so particularly volatile now, but don’t let one up or down day tell you anything. Unfortunately the financial media hasn’t yet adapted to this modern era of internet trading. Financial reporting focuses way too much attention on the DJIA and S&P 500 and those indices highs and lows. Because of day trading and ginormous Mutual funds trading huge portfolios radical ups and downs aren’t necessarily an indication of any long range view of the economy, it’s health, or lack thereof. It’s just millions of investors with trillions of dollars trying to make a buck. As I mentioned in an earlier post about the market:
A stock price is not a gauge of the value of a company. It is an indicator of what a majority of traders believe they can sell that stock for tomorrow. What has really changed in recent years is the time horizon is now just tomorrow, not even the months, weeks or days after tomorrow. There are millions of buyers each day who buy in sell in less than one hour increments, trying to make fractions of a percent in timed buys and sells.
My 3 ‘G’s investment strategy – God, gold & guns.