Obviously these idiotic buy the dip one-liners work great in a bull market. However, how would that "buy when others are fearful" idea have worked out for a Japanese investor starting in 1990? Certainly there was plenty of fear and plenty of buying opportunities over the last 21 years.
The decline has been "orderly" so far almost as if it had been planned. I don't expect any FEAR to show up until we've had a LIMIT DOWN day...sometimes referred to as circuit breakers. http://www.bloomberg.com/news/2011-...limit-down-proposal-for-stock-volatility.html Mark
Agree. I have been in cash since the end of April. I would like to at least get under 1100. I may start light buying then. Under 1000 I would buy heavily. At 850-900, all in and then some. Need to see what the bernank says tomorrow.
http://finance.yahoo.com/banking-budgeting/article/113279/fear-gauge-near-flash-crash-level-wsj Let this work its way out of the system: "It's outright panic," said Andrew Wilkinson, senior market analyst at Interactive Brokers in Greenwich, Conn. of Interactive Brokers. "Right now, investors are stretching in all directions trying to protect themselves," Mr. Wilkinson said. "Liquidation of portfolios and a general risk-off appetite is causing panic in traditional measures of risk."
I'm going to buy lightly in front of S&P 1000. I think fear is in the market, and I think today is going to scare a lot of people, creating more fear. S&P 1000 is where we're going. IF we break that, I'll sit back and say, "Wow, incredible." 1000 is a huge number. Perhaps a 1000 break would give the capitulation buy. I figure we were already undergoing a multiple contraction, growth slowing selloff. Now news driven sell off is going to spike us down. Two trades at once, a great buy is coming. I don't think we are there yet.