Hurrah! The Stock Market Fell Into the Toilet!!
#1 – I AM TIRED OF TMF QUOTES OF THE ORACLE OF OMAHA AND HIS SIDEKICK
however, I agree with the principle that investors should be happy to see a bad stock market. Now is the time to go bargain shopping. The time to buy those Michael Jordan shoes is not when they first appear in stores creating a buying panic, but later, when they go on sale.
#2 – I HAVE CASH BURNING A HOLE IN MY POCKET
For the past couple of years, I have been about 30% in cash; not by design, but by external financial events, plus liquidation of positions where I got high gains but also nosebleed. I have left this cash hoard as is, because I am patiently waiting for a sale.
#3 – WHERE THE HECK IS MY SHOPPING LIST?
There are many principles articulated on TMF that I disagree with, but one I endorse is to maintain a shopping list of stocks you would buy if the price goes on sale. Now would be a good time to pull out that list and see which of those on your list are selling at a discount.
#4 – RELAX AND HAVE A BEER
I have coal and other commodity ETF's. They are all down rather significantly. Get your hand off the mouse that is on top of the 'sell' button. I have confidence that they will go up over the long range, and so should you. I will not close my position on these until I go thru a cyclical period or two.
#5 – DO IT NOW
No, there is no way of knowing if this is the one and only sale on t-shirts, to be exceeded by an even better sale next week, but why take the chance? If you see a decent price on a stock you have been keeping your eye on, pull the trigger. There might be a better sale next week, but if you want it, do it.