Mark: I can think of more than a few people who, if you'd described to them back in January where most of their favorite stocks would trade today, would have been asking you what drugs you're on. Truly the destruction of capital here in recent months has been breath-taking to behold.
It's gotten to the point that, core holdings aside, I'm basically day-trading where-ever possible. Things are just too unstable out there to commit too much to the long view. Again, excepting some long term positions whose downside are strictly limited. Some of which, like WCOM, I've recently re-opened. Indeed, who'da ever thunk it'd be selling below BOOK!?! Yeeesh.....
But this capital destruction leads one to a philosophical evaluation of things. Should this keep up much more then how much longer term psychological damage could occur? True bear markets, when they occur, grind on for a considerable amount of time and are even longer in being over-come. As a consequence basic valuations of companies are radically shifted to the downside. I guess what I'm saying is should you have established a long term position in some of the equities that're now down 60/70/80% from their highs, and which still sport considerable PE's, you may be looking at years before you get back to even.
And this market, political machinations aside, does look like a true bear at this point. All IMHO, of course....
John~ |
