Michelle,
A drop of 24 points is completely irrational. That represents roughly a 28% decline in the Number 1 chip makers stock. You must ask yourself after carefully evaluating the release, "Is a 28% decline reasonable based on the Intel release?" In my opinion any decision based on tomorrows trading will not be influenced by fundamentals, but will be influenced by emotion. I have gotten caught up in the sell fury watching dollars evaporate. However, dollars only change form, and then generally re-enter quality companies such as Intel. The decision to make tomorrow should not be based on the extent of the decline.
What if a report showed Intel off 35 points? Any rational investor WOULD NOT throw away Intel stock for $50. In the stampede for a quick buck in tech stocks like Intel, the fundamentals of INVESTment get skewed. If you are an INVESTor, and you have confidence in the product, the fundamentals of the company, and the capabilities of the management, this should not be of concern. If you are a TRADER in tech stocks and have not secured your position against such (often) occurrences as this, then this is an INVESTment in on the job training.
Personally, I am not going to throw away my Intel stock for a loss. In addition, I don't feel comfortable making a decision concerning my financial future without further unemotional and logical analysis. In short, until I can determine whether the fundamentals have changed so dramatically as to require me to liquidate a position as large as my Intel holdings, I'll stay the course and wait until the dust settles.
Peace,
Addison Z. |
