Sam, I like your evaluation of the drive sector, the Fed Reserve, etc.
But a simpler way to put it (not as nice or detailed as yours): the stock market doesn't have to pay a lot of attention to value on the way up. So why should it pay a lot of attention (to value) on the way down?
As far as buying drive stocks, it would probably pay to wait until January or so. You might miss some "buying opportunities" between now and then, but hopefully, the market will have settled down a little by then. That really goes for the market in general, as well.
December might be the time to start nibbling, or increasing your exposure, to the entire market.
Just my opinion.
Regards,
Larry
PS: an opinion like this is basically worthless, unless there is something meaningful to back it up. I can't give you any hard data or facts to back it up. It just seems to me that, when you have general market drops like this one, you normally have at least two chances to catch the bottom. Catching the exact bottom is like chasing the impossible dream. But, in general, you're much safer trying to catch the second bottom, because you have almost no idea how far down the first bottom is going to be. As you know, some of these stocks can drop much further than you can easily believe, or want to believe, or want to watch if you're holding them. |
