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Don\'t Panic

(2008-09-29 14:06:02) 下一个
It certainly looks like the end of the world today. I was playing golf this afternoon and did not realize the market had a nice dive today until I picked up my messages after the game. What? The bailout plan was rejected due to the Rep's objection?  This would be a shock to the market as expected and frankly, I would expect a more than 1000 points drop.

I still believe something will be worked out soon to resolve this crisis. It's a political game. As much as I doubt that the market will crash from this point further downward, I also feel that, it's the right time to have a backup plan, ie, what will you do if the market does crash from here? 

I hate to say it, but for those who do not over expose themselves and have large cash reserve right now at this point, this is a heaven for them. As much as I do not suggest bottom fishing, if the market indeed crashes another 10-15% from here with great panic, or reach the 60 months MA, I would be an aggressive buyer. But I will not hold on to anything I buy at the dip as a bottom fisher under extreme panic mode, I will sell them with any profit and run. However, I will remain on the sideline if the market does not dive tomorrow and the situation is still uncertain. In other words, I rather see a quick and severe drop than dangle with uncertainties. 

This is not the time for panic. Instead, this is exactly the time that we should be calm and access all our options and decide how you will react to the market if it does crash. The sky might fall, but those who have a solid plan will prevail.

As always, don't simply follow anyone's idea to buy/sell stocks, it's your money and your decision.














  


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Panda_A 回复 悄悄话 每天搬把小板凳, 就等老师上课. 能不能请再讲的详细些, 或开小灶啊?
(It's too tough to type in Chinese...) As a layman, how do I prepare for my backup plan? What are the choices?

虔诚的一鞠躬: 谢谢!
firefly8 回复 悄悄话
我现在定期看你博客了。

再谢评论!现在真的得机会和危机共存啊。

(原来ID太一本正经了,还是firefly萤火虫更俗点,与股坛的铜钱味更和谐 :)
小股僧 回复 悄悄话 谢谢老大!
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