And anyone saying it did is a snorting bull in the middle of a bear market, and certainly got crushed today.
If you don't have some of these funds in your real life portfolio, be prepared to swallow volatility and night sweats.
No "prudent investor" ever advocates "bottom-fishing", a term for the strategy of attempting to time the market and buy securities at the lowest point. Under the current market conditions, however, almost everyone in the market is speculating, either trying to will a bottom into existence or resist jumping into stocks priced at irrisistable valuations.
For this reason, now at Dow 9250, you can be certain that this is not the bottom. In fact, as long as investors remain focused on "finding the bottom", we will not have reached the critical point of capitulation. As long as the typical investor, (or as I argued above, speculator) is tolerant and speculative enough to actively anticipate a market bottom, we will not get that bottom. It is only when the typical investor completely gives up on securities all together that we will have a bottom.
Wall Street's hubris in anticipating this bottom, I believe, will be its undoing. The talking heads on TV are saying the bottom is 9000 DOW points. That is criminally misleading to all of the amateur investors that this entices with false hope. Try Dow 6000. The deleveraging of this credit bubble will be exceedingly painful to the market and then the economy. People will look back at these levels and wished they had gotten out here, as we're not looking at a "V" bottom, we're looking at a deep recession or a depression. You can find me in gold, healthcare, consumer staples, defense, index shorts, treasuries and cash.
See you at the bottom. [more]