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Varchild2008 (84.41)

We've hit mass panic...Circuit Breakers are working overtime!

Recs

6

October 24, 2008 – Comments (6)

Jokingly I said on the Motley Fool Voting Poll that the market is going to trade up, waaaaay up.

So I wake up to see that the CIrcuit Breaker had to kick in around 8:00 a.m. due to the market being sold off up to its 5% limit in all 3 indexes.

We could witness a 1,100 point drop by 2:00 p.m. today and that leaves us with another Circuit Breaker Freeze for 1 hour.  What happens after that freeze is anyone's guess.

But today marks the day the DOW will hit 6,000 at some point.  The 7,900 point bottom that everyone was hoping was the bottom we can kiss goodbye.

The Stock Market is in absolute Nuclear Meltdown.

I can't help but laugh as I hear analysts on CNBC continue to say, "We just need buyers to realize how amazing cheap everything is here.. great values everywhere..."

Nothing in the entire stock market is a great value until this complete market meltdown mess is over and we have some stability for a change.

It looks like OCTOBER is set to be one of the worst MONTHS the stock market has ever witnessed.

6 Comments – Post Your Own

#1) On October 24, 2008 at 8:49 AM, Option1307 (30.47) wrote:

Everything is super cheap right now, woo hoo!!! The only problem is there is no stopping these companies from becoming ridiculously super cheap, i.e. broke/bankrupt/out of business... So I agree, I'm waiting more before I resumme buying.

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#2) On October 24, 2008 at 9:03 AM, outoffocus (24.55) wrote:

Yea last month I predicted a 1000 point drop in the DOW, while other people were predicting that we were at a bottom. I'm kinda stuck here. I dont know whether to buy or to wait.  You guys do have a good point though. We should all probably wait until things settle. But at the same time there will be bargains to be had everywhere.

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#3) On October 24, 2008 at 9:21 AM, Gemini846 (89.12) wrote:

I'm seeing some companies that are stable pushing 20% yields.

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#4) On October 24, 2008 at 9:41 AM, dwot (99.55) wrote:

Gemini, you have no idea how companies are getting hit, and they are getting hit in this market.  One of the things I've been consistently saying is I may trust Paul, but Paul may have dealing with Peter, who screwed up royally and leaves Paul out to hang, so Paul did everything right put Peter dealt him a critical injury, or even a death blow.

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#5) On October 24, 2008 at 9:53 AM, oldfashionedway (39.37) wrote:

Excellent point, dwot.  Patience is a virtue...

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#6) On October 24, 2008 at 3:38 PM, Varchild2008 (84.41) wrote:

Thanks all for the advice here.

I went and bought 50 shares of DPS at 19.00 a share....
Bought 50 shares of BBY at 21.16 a share.

I do expect Best Buy to eventually fall into the Teens at some point and I guess I bought in today on the basis of its 14 cents a share dividend and the 2011 catalyst which is the year we move onto the next gen consoles with WII 2 coming out.

I am 28 years old and I can afford to have my portfolio get smacked around awhile for a huge gain 3-5 years from now.

Waiting for stability is the smart thing to do but dividend paying companies that can last through a recession are safe buys at these levels if you have a long, long, long term hold strategy.

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