The Re-evaluation Process
As I have stated a few times, my game plan about a year ago was to be out of the market for a year and re-evaluate.
Today Bespoken has a post of data that goes strong to my re-evaluation process. Out of the 20 one day largest drops in the markets 14 of them were between 1929 and 1934.
I tend to think we are closer to 1929 then 1934 in this deleveraging process. Earlier in the week I did a blog about how the property bubble preceded the "bottom" by 6 years. Florida's bubble only popped about 3 years ago.
I think today was the first "panic" day, but I don't think it is the last we'll see over the next little while.
I was chatting with a dear friend about this and this friend had been playing the market some, and given how awful it has been, well, my friend is up 4%, which if you are up 4% since the peak last Oct/Nov, well, pat yourself on the back big time. I am up about 4%, however, the difference here is I've done nothing, no stress, no worries and I haven't been obsessed with checking in constantly to see how the market is doing.
Right now I am leaning towards continuing to watch.