I think we have a vague idea of what may be on the markets tomorrow. (down! down! down!) Time and time (and time) again, we see "mood swings" occur. Its what we decide to do that determines us from everyone else - the herd.
I read and re-read a great article over the weekend and cant help to wonder why do we concern ourselves with major swings, particularly on the down side. If we truly have to watch the markets on a day by day (YES, day by day - rather than tick by tick) and fret what will/wont happen - YOU "are not running your financial life properly."
I have always advocated that one should not purchase securities if his/her free cash flow does not allow. We all have mouths to feed and bills to pay - getting caught up in leverage, purely shows the ignorance of financial history one has!
Chasing when others are chasing - only brings about herd like behavior and 99.9 times out of 100, you are bound to get it wrong. Adding consistently to a low cost index fund (think Vanguard) or a *high* quality LIC (think CHO, AUI, DUI, ARG...etc) will yield better results over the long term - without the fret and worry of a panic sell market.
So..... watch with interest those levered up panic sell. Its far more rewarding knowing your making money long term than fretting and freaking on HOW MUCH the index falls or rises every single day.
CHO Price at posting:
$4.67 Sentiment: Buy Disclosure: Held
