<<LU it has been stumbling for a while now>>
Thats exactly why funds and people have been buying it. It's that "buy on the dip" mentality that will lose many Fund Managers their jobs, and bankrupt many individuals like us.
In the past, yes, when the market was more predictable, buying on dips with a LTB&H strategy did very well. Different market today all together. I clearly remember my first lesson in this : Buying Elon at $105 when all the pundits were saying $200 will be a cakewalk. Well, If I liked it at $105, then I guess I was smart to buy at 95,85,75 and so on and so on......Now, I've had other stocks that fell just as far or farther, but I wasnt buying lots on every $10 dip downward.
The problem today, as compared with years past is for most stocks and the market in general, you could tell when we were near a bottom and buying the dips was a whole lot easier and far more prosperous. Now, look around. Everybody is calling for a bottom, and everybody has a different number in mind. Some say 2000....some say we have bottomed and are going upwards. The point is everybody thinks they know, but until we are looking at this as a past history event, we just arent going to know who was right and who was wrong...did we bottom at 3000, 2800, 2000 or what....... Additionally, look around. many folks have been calling for bottoms at all different levels and screaming buy, buy, buy......well, for those that believed a bottom was a couple weeks ago and bought because of it are in deep doo doo if they dont have additional dry powder left. That brings me back to the point....how long do you keep buying on the dips. I mean, I am sitting here debating maybe buying some more rmbs or jdsu on a dip, but the other part of me is thinking "are you crazy". Nothing is safe. Most stocks are at levels in which people are all saying " I cant believe so and so has gotten down to such and such a price".......yea, well, I bet they said that $20 ago too!!
Anyway, my point is, that I dont really have a point....this is just a sick sick market and folks better be damned careful.
Keith@wantingtobuybuttoodamnedscaredandinfactmayendupselling.com |
