Before I run out the door, a couple of things about today.
If the market really cracks because of this external shock (Katrina) I may hold off on taking action in the portfolio. A 5% move in oil seems like panic buying. If that is right, it would make sense to see it back at $66 soon. If the move in oil caused by Katrina can be unwound, it is logical (to me) that any damage in the stock market can also be unwound.
It looks like some insurance stocks will get hit as a result of this. Yet another reason why I don't own this sector for clients, along with Spitzer risk.
I hope Marty, the reader that sold 6000 XLE because Schwab told him oil looked toppy, has some exposure to the sector. Marty's plight made quite an impression on me, if you hadn't guessed.
Wikinvest Wire
3 comments:
One has to wonder what kind of training and experience the Schwabby guy...
That is one question, to be sure! another might be how many other clients were advised to do similar trades? Schwab is more of a factory of advice as opposed to this one guy free-wheeling. Even so, I hate this story.
Oh! Yes, of course...my post should have read: I wonder whay kind of experience Schwab ahs advising clients. I believe they started as a "Discount Broker" who took advantage of the fact that some people wanted stock trades with NO advice. And now, they get cheap trades AND advice? Which is it? Is advice cheap?
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