Use access key #2 to skip to page content.

The Boss weighs in on the markets



October 28, 2008 – Comments (0)


I woke up this morning and flipped on CNBC while getting ready for work, saw that the futures were up huge, and thought to myself, I can't believe the volatility that we're seeing right now.  The violent swings that we are seeing from day to day and even intraday remind me of a Bruce Springsteen song called "One Step Up."  I have modified the lyrics slightly to apply to our current situation.

"Woke up this morning 
my stocks were cold
Checked the ticker,
and saw Joe Kernan'
Logged in and checked out my portfolio
Saw a lot of red
My stocks aren't earnin'
The market's given me some
hard lessons lately
And I'm definitely learnin'
It's the same sad story
that's a fact...The market takes
One step up and two steps back."

I'd go on and do the second verse, but I haven't eaten breakfast yet because I have a physical scheduled for 11 AM and my brain is barely functioning (Note to self: put more cans of food in the Great Depression shelter.  I don't want my brain to shut down during the coming Armageddon.  I'll need to be on my toes) ;)

The current market is like death by a thousand paper cuts as the saying goes.  It drops enough to be annoying, but not enough for capitulation.  Then it teases you with an up day, one step up after two steps back.  Fortunately, the dreaded month of October is coming to a merciful end after the major indices have dropped something like 25% this month.  For whatever reason, October has historically been a very bad month for Mr. Market. 

While no one knows for certain, I personally suspect that November and December will be much kinder than November has been.  I anticipate the markets being flat to slightly up for the rest of the year.  It doesn't matter to me either way because I will continue to add money to my favorite stocks when attractive opportunities present themselves.  In fact, the longer the market hangs out down here, the longer I have to add to my favorite companies at what I consider to be great prices for someone who has a very long term time horizon.


0 Comments – Post Your Own

Featured Broker Partners