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“The rally in risk assets has become overextended as it has run ahead of the improvement in fundamentals,” Lee Hardman, a currency strategist at Bank of Tokyo-Mitsubishi UFJ Ltd. in London, wrote in an e-mailed report. “The dollar and yen have been boosted by a pickup in safe-haven demand.”
At the end of the day on Thursday 8-13, I moved all of my 401K money out of stock funds into money market funds....and I'm glad I made the move! My inner investor kept telling me to get out now. I ignored that guy ( my inner investor ) last fall and took a beating. Nonetheless, I didn't panic so I kept my money in stock funds. With the big uptick since the crash, coupled with my ongoing contributions, my 401K is back to 92% of its peak value in May-08. It still hurts, but not as much as it did when it was waaaaaaay down in the dirt back in March-09.
At the end of the day on Thursday 8-13, I moved all of my 401K money out of stock funds into money market funds....and I'm glad I made the move! My inner investor kept telling me to get out now. I ignored that guy ( my inner investor ) last fall and took a beating. Nonetheless, I didn't panic so I kept my money in stock funds. With the big uptick since the crash, coupled with my ongoing contributions, my 401K is back to 92% of its peak value in May-08. It still hurts, but not as much as it did when it was waaaaaaay down in the dirt back in March-09.
My inner investor told me to buy some FAZ in March.
Ok folks, take a DEEEEP breath and relax. This is nothing more than a common pullback that is typical after the kind of runs we've had recently. It won't add up to much when all is said and done, and it represents a great buying opportunity for any decent stock that you are long in.
For the second time in recent days, I feel the need to post my favorite investing quote:
Quote: "Bargains are the holy grail of the true stockpicker. The fact the 10 to 30 percent of our net worth is lost in a market sell-off is of little consequence. We see the latest correction not as a disaster but as an opportunity to acquire more shares at low prices. This is how great fortunes are made over time."
My inner investor told me to buy some FAZ in March.
He may need some more experience.
LOL ... I had some brokers trying to sell me bear funds like FAZ in March and April. They were convinced that the market would be down at 5000.
I did buy some FAZ in July and, although I am losing money on it, I have covered some of my losses through selling calls. I also own FAS and any losses on FAZ have been more than covered by gains on that stock.
Its been a powerful rally. I think the question is, how low does this correction go.
The market falling below 8,000 or 7,500 wouldnt be good technically.
Wouldnt be suprised if the market went flat for awhile, maybe for the rest of the year. Its already been a huge rally off the low.
Well ... I usually get it wrong anyway. A while ago I predicted that the market would trade in a range 8200 - 8700 for a while and then it went up to 9300. I do think the market is oversold and it could very easily drop to 8800 - 8900. But will it .......... ?????
The first thing I do after I turn on the coffee pot in the morning is to check the Asian financial markets. Hong Kong and China, the Hang Seng index. This usually indicates where the U.S. markets will head. We are so closely linked to the trajectory of the Asian markets & they're sliding right now. We'll probably continue to follow suit in the near term.
This is a global situation, and no economy will do anything in complete isolation. However, there is a better upside to Asia and other emerging sectors long term than that of our battered U.S. economy for the foreseeable future. There is limited growth or production in the U.S. at the moment, but lots of credit woes and a dollar that isn't worth the paper it's printed on.
This bear market rally was basically brought about from money that was sitting on the sidelines and thrown in based on flimsy data and high hopes. Now the indicators are so strong, they can no longer pretend that, as Jim Cramer phrased it, "The recession is over!" Far from it my friend.
It's going to be a bumpy ride, but according to what I'm reading, we may have a buying opportunity this fall. In the meantime, don't spend money on anything that you absolutely do not need.
It's going to be a bumpy ride, but according to what I'm reading, we may have a buying opportunity this fall. In the meantime, don't spend money on anything that you absolutely do not need.
Out of curiosity why do you say fall?
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