dow futures 126 pts down, page-46

Tony,
I too remember those times with all the panics, peaks and hard times of many decades past and the 'more famous' (or infamous!) companies, flamboyant personalities and events of the times too. So many opportunites taken/not taken, so many lessons learned (particularly in 1987) and so many missed chances for the long term too; thinking I had been ruined forever on a massive scale. Not so. Not even close!


Frankie,

The time for risk adversion was at the heights of 2007 when the investment climate was way out of hand and people exposed their livelyhoods to excess margin lending, etc. The unravelling of huge portions of that risk came in 2008. Sticking your neck out with MEASURED RISK now is a very different story.

As I have said in the past, I wouldn't even start to look at many standard, or wreckage companies as investments for the next stage ahead. However, I recommend you stop looking at indexes and general companies of the market in the headlines and buy GOOD QUALITY companies and sectors that will be snapped from the wreckage in this next recovery stage (forget those that will still be in for the rough ride and that will still obviously produce bad news ahead). We may have another step down, but you will be looking at the woods, not the trees.

Many say that fundamentals have been forgotten. It is very true and this very fact is exactly what has turned the market on its head to start with (it always happens that way). The fact is, sound companies make money. If they are well run from the beginning, they will emerge as the winners as a new phase sees fossicking over the wreckage for profit producing businesses. In the end, a port of cash laying on the road only gets missed by people passing by, for so long.

I have been in this for many decades already as stated above. One day you might realise how little some of the things you are sweating over actually matter in the scheme of things (eg: an index rise or fall on ASX after a US holiday). Opportunities come and go in various countries over various times; markets rise and crash, but over the years, many investors have been and still are very well equipped and positioned for and through it all. (ie: You were not the only one to pick earlier declines. It was very obvious it was coming. The world has some major problems even now, but like before, they will be unravelled, swept under the carpet to a degree and we will carry on. The world does not need to come back to a total reset stage where international economics are entirely washed out and totally squeaky clean again before advancing in future. Economics was never squeeky clean since centuries ago. The funny money will persist and the game will play on. That's what we have always had media for.