OK, it's time to "Ask Michael Burke":
Here goes:
1) Who is Ralph Acapella?
2) Then, oh let me see if I can get this one on my own, you are hoping the market goes back up because you bought the right to sell shares of stock in companies that went down and you don't think they will come back up before your option expires? Ok, I'll bite. In that case, why does it matter whether the market comes back up or not as long as the crappy stocks stay down? My investment guides all come with training wheels. In the section on puts and calls they say, "kids, don't try this at home." Advice I mean to follow until I grow up.
3) What is a cyclical bottom? And how does it differ from other bottoms (in the economic sense, not the anatomical sense)?
But, you are right about people buying on the dips. I was at the library this afternoon researching SUVs and noticed more geezers than usual at the Value Line table. I walked up and said, "well, this is reassuring. You guys look like you're all buying." The oldest fellow looked up and smiled. "Oh, yes," he said, "We've seen quite a few markets like this in our time. Now is the time to start making a list of companies to buy when the time is right." The fellow sitting next to him started cackling and rubbing his hands with glee.
Thanks for all your help,
CobaltBlue |
