If it were up to me, what would I do with my money? It is really hard to separate the influence of SO on how I would manage money alone. I was struck by the happy faces on the articles this morning.
Time for a correction, as we haven’t had one of those in a while. Look at the big picture – S&P 500 since 1950 – just keeps going up even though there have been several corrections of 10-20% along the way. No problem, just wait a few months and we will be a new highs.
We’re Due For a Good 10% Correction, by Mario Rizzi
Better yet, you are in this for the long haul, aren’t you? You aren’t one of those nasty traders, are you? This will be a buying opportunity for all those quality stocks you have been wanting to purchase but are too pricey – Coach, Coca-Cola…
What To Do When the Market Goes Down
Give me a break – Coke is busily beating down everyone one who is opposed to them selling tap water in plastic bottles at huge markups – very profitable business on high moral ground, so they claim, along with selling vast quantities of high fructose corn syrup that is ruining the health of the world. What are they worried about – some kid will notice the emperor has no clothes?
And Coach makes moderately expensive handbags, for pete’s sake – I should know, I have owned them. What kind of solid investment is that?
Sell if you can’t stand another 10% – 20% correction from here. But don’t get too bearish after prices have fallen that amount. At some point, the Fed will step in to restore liquidity and the bad lenders will have been wiped out. And that will be the time to step in and buy.
Why Stocks Unrelated to Mortgage Lending Are Falling As Well
Bad lenders wiped out? More liquidity? Step in and buy? So only the bad guys get hurt, and the good guys go on their merry way? And trees grow to the sky – oops, there is that SO thing again.
Ok, so I’m not going there or putting any faith in these guys. So then what? Yield curve is negative again. While I don’t actually trust the government to make good on promises, even T-bills and Treasuries, these are likely that last obligations that they will welsh on. So back to the little old lady investment strategy. You don’t get rich, but there should be money in the bank when the dust settles.