Saturday, November 10, 2007

How Now Brown Cow?

Well the markets aren't looking too hip. In fact, some reckon that it's rather scary. The US Market closed down another 223 points last night.

  • "People are more and more worried about recession," he said.

    For the week, the Dow lost 4.1 percent, while the S&P fell 3.7 percent. The Nasdaq was the biggest loser, dropping 6.9 percent

At times like this I do reckon that it's probably wise to keep everything in perspective. And sometimes the financial news network do tend to dramatise everything a little bit too much.

Some decent comments made by blogger Kirk

  • That lack of concern frankly concerns me. I realize that this market has preconditioned all of us to buy the dips, especially the very big ones. Anyone who has not bought dips this year has been crucified for doing so, so I understand why we're hearing these opinions. In fact, just looking back at this year, if you put money to work back in early March and August, you did quite well. As many of you may remember, I was one of those people telling you that it was time to put money to work in August when people were running away and thinking that cash sitting in their money market accounts were in dire jeopardy.

    But, I learned long ago that not every dip can or should be bought and that the market has a way of doing what people do not expect. Think back just two short weeks ago when so many counted on another rate cut on October 31st to start off the 4Q rally. That didn't work out very well, did it?

    I think the market sent us a message this week that not all is well. I'm not just talking about the rumors of more writedowns, high oil prices, consumer confidence, falling dollar, or the state of the housing market. Most of us have seen this coming for awhile. In fact, we've looked like idiots for thinking that these issues actually do matter. But, eventually all chickens come home to roost. This week we've only seen a small glimmer of what happens when they do. I personally think many more will come, which is why I'm staying patient and away from the fray until I think it is time to take aggressive action. That time will surely come, I just don't think it was this week.

    As always, I hope you're holding up well, staying defensive, and keeping everything in the right perspective. Better days and weeks are certainly ahead and we'll get there together.


I do realise that folks like CSFB and SP have been extremely bullish on our markets for 2008. ( See CSFB: Malaysia Boleh 2008! )

Have you evaluated your own portfolio and account for the present, current risks? Time for a serious rethink, yes?

And as blogger Kirk said "... keeping everything in the right perspective. Better days and weeks are certainly ahead and we'll get there together."