What we should do now is what we do each time the market takes a severe beating, namely, sell part of some shares that did not go down in % term as much as other shares we would have liked to own in happier times, and buy some of those. Wealth in equity is a relative concept, whereas cash value is absolute.
I happen to believe we have seen the worst of 9984 crashing, but have not seen the worst of Nasdaq 100 crashing (CSCO, ORCL, EMC, PHCM, VERT, ICGE, YHOO, AOL, JDSU, ...) and we merely have to wait, while sitting on our pile of 9984 and cash, and act (sell part of 9984, switch horses) when the big bang goes off. And if we are wrong, the NASDAQ 100 fails to blow up, then 9984 will recover by and by.
In the meantime, toss out some grenades every once so often (sell some puts, sell some covered calls) to see if there are any live ones out there, somewhere.
And if we run across another opportunity such as Philip Morris a few weeks ago, we move in with some heavy armour and gunships and reclaim some lost hill top. |
