he's right on.. my bigeest wins by far were after the markets re-opened after 9/11.. I loaded up on call options and had a amazing run!
This has got to be one of the dumbest posts I've ever read. Do you realize what damage Katrina did to the budget for the next 3 years? Did you not read Snow's statement and the Feds yesterday? Do you realize what a category five hurricane will do if it hits Texas come Saturday? Regardless of what the press says, ITS A REAL EVENT AND THE MARKET DOESN"T LIKE UNCERTAINTY. Are you certain over the next 3-5 days that this hurricane will do no trouble? Go ahead. Be a hero and buy stock after it hits. Your portfolio will be decimated with that line of thinking. Without damage estimates, you are merely gambling in the wrong direction!
I would have to agree with the original poster. Bad news will drive stocks down which is perfect opportunity to start nibbling back into stocks when things are bad. If you're only looking to buy in when the roses smell good, you won't be the only one getting in on the action. When things seem bad, that's when you get in.
And what's to stop it from going down? Until Saturday, uncertainty looms. After assessment of damage, you don't know had bad Rita's effect will be on our country. Selling can be followed with more selling.
You're right to a certain extent, I don't think anyone can 100% correctly project the bottom that's why I said start nibbling back in. If you normally play with $200,000 per stock, buy in at chunks of $40K and slowly scale in with a mental stop at a certain level. Apart from hurrican devastation, there will be massive spending that will need to happen which a lot of people are overseeing. $200 Billion earmarked for NO reconstruction alone.
Keep in mind the market is discounting worse case scenarios with each passing day (total devastation, refineries totally wiped out, etc....) If it happens it is already priced in and if it doesn't happen then we get a little bounce back until the next event.
According to the rules, you buy when blood is running down the streets. it's the way it has always been. Any good trader should know that.