HappySqurriel said:
The market is an irrational system where people react based on emotion and as a result we are in (very) familiar territory ... Right now there are tons of people who are in panic mode, and are selling off all of their investments because they don't know what is going to happen next. Over the next couple of weeks there (probably) won't be any more (major) news in the financial market and bargain hunters will start buying investments which will raise their value; soon after that the reports that the "worst is behind us" will come out and the market will rise further. Your investments may not return to their previous value, but it is likely they will rise enough to be worth the wait; althoug (as always) their is the risk of further troubles. |
Yes sir, yes sir.
This crappy downturn this week is a prime buying opportunity. Keep this in mind, kiddies; Back in mid-July the bulls in the market took a few weeks off and the market fell quite a bit. Now while some people see this as "Oh no, INSTABILITY RUUUUUN!!!", the smart investors will see it as "Hmm, a bunch of really good companies are being oversold on irrational fears that the financial sky is falling. Time to buy."
While it's true that a few really big, really old companies fell from the highest of heights this week, that doesn't mean they're ALL bad.
Invest in the large caps. They're better able to survive the fear runs.
Cdude1034's move of the week: I bought (that's right BOUGHT) 62 shares of Wachovia (wb) at $8.99 per share.
Why did I do this? They have $101 BILLION dollars in capital. It's a stable company that's well capitalized with no fear of going bankrupt in the near future.
This is the PERFECT time to buy.
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