Days Like This


Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Sep 25, 2003
I have to admit that when I see days like yesterday, my faith in the market gets shaken :p. Good economic news, good earnings; now the market is nervous about potential for raising rates = big dump. Seems like the market timers/day traders outweigh the investors!!!

A 2-3000 point drop in one day would be really nice. Then I could back up the truck and go 100% stock like I did after the 22% one day air pocket in 1987.
Well a lot of folks thought the interest rate situation was already priced into the market.

I didnt really feel that strongly about it. Drops and jumps of 30% and less seem like a big fat so-what after the 1997-2003 ride.

I'll take up Buffets mantra on this: price drops are great things unless you're selling, and price jumps are bad news if you're buying.

I aint selling anything for at least a couple of years, if ever, so it can do what it wants.
Eh, these short term movements (I consider under 5 years "short term") are purely speculative.

I got my first bloody taste of that when I was a kid and bought a lot of my company's stock when I knew we were going to announce high record results and the stock immediately dropped like a rock. So the next time I compensated by selling like crazy when we were about to announce further record results and got to watch the stock fly through the roof.
Presently the market is way overvalued. The PE listed for the Vanguard Total Market is 24. A P/E of 14 has been the historic norm, so I don't think we can count on the P/E growth to fuel further stock market growth.
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