Stephen...the best buying op of the last 10 years happened in the middle of a "financial crises" (Oct. '98)...because, mainly, the Fed is not going to let the financial system break down (it seems)...Based on 98, it appears that the Fed would rather risk short-term inflation (and even a little bit of a bubble), "pump" money into the system when they normally wouldn't....to make sure there is not a lock-up in the financial system...
With additional $$ in the system, the Naz stocks usually benefit greatly...especially technology....I suppose one could argue that the psychology on tech stocks is so bad now (bear market), that the effect might be muted.....but I believe history points to buying growth in such times..
Now, if you think Fed won't save the financial system, or go far enough with cuts to do so, then I think it is good to bet against them...but, based on past experience, that would seem a bit trecherous, no?
BTW- I am worried about the reaction, so far, today, by the Naz.....I am not seeing the buying interest I would have expected to keep the damage minimal....I am concerned, too, about having to make a decision ("should I hold over weekend") for I missed the 1st bounce 2 days ago.....and this may just be correcting Tuesday's excesses......
So far, I am disappointed.....would be happy to finish down 30 or 40 today.... |
