Every second post now seems to be a different person downgrading our market and stating their views on how much the market is going to go down. To all the novices out there or newbies just beware of these people who constantly down ramp our market. These people have invested heavily in stocks to go down by shorting them and buying put options, it is in their best interest to spread panic and entice people to sell, they do not have your interest at heart. Crashy for example has openley admitted he stands to make a lot on particular stocks going down and that he has shorted several stocks, of course now he is going to write posts on how the market is going to crash (there are several others), he needs it to!
Take note of a fact that has been repeated several times on this forum, and that is that the market will always come back and make a higher high, over what time period this occurs is unknown, but the market WILL bounce back eventually. I currently have no money invested in the stock market (lucklily) but have just arranged to have some capital freed up so i may take any opportunities that MAY arise in the next week or two. There is no doubt the market will get smashed on Monday, and there is probably further weakness to come after that. My point is that in these conditions, quality (blue chip) stocks go down when perhaps they dont deserve to. The blue chips that are out there that are trading at ridiculously high levels (ie. look at there PE Ratio), deserve to have their share price corrected, but be aware that several QUALITY stocks will get dumped and drop to prices that will most definately make them oversold and provide for a smart medium/long term investment.
It is in times like this when smart people will carefully place their money in quality stocks for the medium and long term when everybody else sells in the panic. The fear factor in a market like this is huge.....people sell quality stocks at stupidly low prices and then watch it over time come back to previous (and higher) levels. It is a great time to try and pick up some bargains and then sit back and watch over a given period, the market and stocks rebound.
I believe that if you look at stocks like CBA,ANZ,AMP,COH,AMC,BHP (and many others) on their current weakness and most probable weakness to come as well in the next few weeks, over the long term you should find yourself coming out on top.
The above is purely my opinion, and no doubt ill cop some criticism! Good luck to all traders/investors and remember trying times often present profitable opporunties.
