Jim:
Tis' a bit bloody now ... but, I think you are right, the fundamentals are still solid, the growth is still there, the stores are still very, very busy, and buying will return to the market.
My guess is that we will retrace back to the low 50's rather quickly once the confidence returns to the market. When does that happen ... well, I just got back from the "upchuck store" with a new supply of barf bags!!!!!!
Interesting thought ... my wealthy client is NOT a buyer yet!!! He has several hundred thousand dollars to invest resulting from the F & C $1.2 million house sale last month. He is waiting for the momentum to head north before he commits to the market again!
As I said, I am not a margin buyer ... though the market is creating a tempting opportunity ... I use Waterhouse Online broker ... their margin rates are a little over 8% ... so, on an annual basis, whatever you buy, needs to have a greater than 8% return to break even! Others may add more to the idea of buying on margin ... if I do buy on margin, it will only be because there is compelling reasons to do so!!
Best of luck to us all and look out for falling people, er, objects!!
Mel |
