The Sky Is Falling - Testing Your Mettle As An Investor
OK, the bottom fell out of the stock market today. How did you react? Yes, you often read, right here on TMF, ‘when others get greedy become fearful’ and vice versa; how about ‘buy low, sell high’?
Did you panic, head for the exits, buy gold coins and stuff ‘em into your mattress? Or did you greedily rub your hands and review your watchlist, thinking that there might be some good sales?
I invite you to review my Fool Portfolio. Over the past couple of months, it has lost around 2/3, but look at my closed picks over the period: virtually none. As to my real portfolio, I am doing some research tonight and will put in some market orders to my broker for the market opening tomorrow morning. I could care less how much my portfolios lost today.
How ‘bout you?
Will this be August 2009 redux? I heard an interesting interview: Italian bonds and LIBOR. Guh? Turns out that someone from ECB committed a supposed gaffe and said that Italian bonds will not be propped up by the ECB. Thinking is that if the yield goes over 7%, it becomes a level that the Italian gov’t cannot cover, therefore presaging a sovereign default and the collapse of the Euro; this news will happen at 5am. Next, LIBOR will be set in London at 6:50am. If this goes through the roof like that bloody day in 2009, we will be in for exactly the same thing all over again. Perhaps these are just navel contemplations, but do not say that no one warned you.