So it looks like things are going to kick up a notch at the open. Are you more likely to react like Dr. Zaius or Dr. Smith?
I say this when things are going well and I say it when things are going crappy; have a plan, stick to that plan and do not get emotional. There has been worse market action in your life time.
For some the best plan is no action, to simply ride it out. Maybe that is you , maybe not, but you need to decide for yourself and hopefully you decided ahead of time which if you have been reading this site for any length of time how could you not have at least thought about the subject?
From here things could get better or they could get worse but I know that there will be those who panic who end up making it worse than it actually needs to be.
Plenty of folks on the teevee tell us not worry and not sell but I don't think that is the whole story. Selling something into this is not a sign of panic but selling everything, as one reader commented yesterday is a panicked move.
Lest anyone be confused or be a new reader I am all for defense but starting to take defensive action after a 20% decline is usually not the best time to start.
Hopefully this post conveys the lack of emotion I feel and hopefully you can stay calm throughout.
Now a dog PSA. The puppy we just brought home, Trixie, came down with parvo which is a virus that dogs get from other dogs or from the soil where infected dogs have been. Dogs with parvo throw up, have diarrhea and do not want to eat. This was the second time we have taken a dog to the vet on day two with parvo. Trixie is just fine. Puppies eat like fiends. Get your new puppy to the vet right away if it does not want to eat. Left untreated for even a couple of days parvo is deadly, jumped on right away, I mean right away it does not have to be. We are two for two catching it and treating it.
13 comments:
you do seem emotional. you seem emotional about convincing people to stop being stupid and get a plan.
Other wise all I can say is your comments are normally excellent even when I disagree with you.
Apparently the fed thinks eliminating bear markets is part of their job. I need to buy more gold.
as my brother just pointed out he really is helicopter Ben. i am surprised the dollar isn't down more
Extra, Extra, Read All About It!!!
Hoping to prevent a market meltdown and recession, the Federal Reserve lowered its overnight lending rate by 75 basis points to 3.50% on Tuesday in a rare move between formal meetings.
So I'll ask a dumb question.
I'm not happy with Ben's move. I'd like to see him stop shoving dollars down everyone's throat.
Given that, what should he be doing now? Just letting things ride? I mean, a recession doesn't scare me. I guess it scares stock markets around the world.
i don't know what the fed should do. the appear to have made an attempt to stem the selling of equities. an hour later and we are closer to the low than the high made right after.
does this hurt their cred? i don't know. seems like it might but we'll know soon enough i guess.
If the fed thinks they need to lower interest rates then they should be lowering 50 bps at the regular fed meeting not in between meetings unless there is reason to panic.
not 75 bps to calm wall street between meetings. If they need to reassure the public all they have to do is have one of the governors "guess" the fed will lower 50 bps at their next meeting during an interview on cnbc. If the markets are still confused a second governor can be interviewed a few days later and again "guess" the fed will lower 50 bps at their next meeting. It is not hard to signal your intentions if you want to.
This is panic and poorly timed panic by idiots in my opinion - Just what you want from the FED.
It seems to me that Ben & G. W. B. are are trying to get American consummers to increase their debt load & spend their way out of the current crisis.
Does that make any sense?
These same people are already too far in debt they can"t keep their houses. If B&B succeed in moderating the severity of the downturn, is it possible that this will only increase the length of the bear market?
Willy is left wondering.
Hopefully this will give people a chance to refinance and we will all live happily everafter.
Glad your puppy is OK:-)
I think it was a reaction to the market meltdown....;-)
Well, I can tell you what I am doing -- using the gains I realized in 2007 to buy in 2008. I may be early, but I'm not too, too worried on that front. A bear market, sure why not -- but a recession . . . not yet.
And I'm buying stuff that would give Roger fits (balancing sectors is not my interest, I prefer stuff I know well enough to decide that its cheap). I reserve the right to be wrong, but I've got a long timeline on these moves anyway.
Yeah, it's sector balance time. I can't pick a bottom, so I might as well pick a random day and buy some REIT.
Isn't Wall Street and every other major market in the world populated by adults presumed to be capable of managing their own affairs?
I would have much preferred that Prof Bernanke let the markets sort this out and have the Fed decide rates at their next meeting based on the Fed's defined responsibilities.
Fred,
apparently not, lol.
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