The street seems to believe LU walks on water but 55 is the last decent support. I'll leave and wait until it and the mkt decides to come back from the dead...
Sounds reasonable to me, although in this type of market who knows what's next, certainly things do favor Bears, what is the bottom? No idea.
I mean, not too long ago we were under the pretension that we were living under the "Goldie Locks" era, and now is like Armageddon, (the movie, not the other stuff).... what has changed ? nothing. So, another third world country exploded, and what is new under the sun.
They have been living under worse condition for eternity.. who cares, they still have to communicate, and do other things. Are the politicians going to change....? I doubt it, as usual they will devalue, up taxes, or inflate, or whatever the technocrats dream up next. Deflution... stagilusion...
Bottom line life goes on.... you want to get rich? good, buy low sell high, it is easier if it is quality stuff.
In this particular instance, I choose to either wait it out.... or buy more as it goes down, slowly and no worries.
Imagine this company is a great big industrial warehouse (as in Real Estate), it is on sale, and you are allowed to buy no the entire building, but a few bays of it as you go..... market is rotten, stinks and all the rest... but it is now that is buying time.
When it comes back, your warehouse will be more valuable, and it is up to you to either sell the whole bay, (or two if you added to it), or just a brick or two to pay for whatever.... groceries, college, whatever....
As for moi... ?I used to trade as well..... However, I believe that a better strategy is that of being a vulture, with quality companies is easier... but that is only my opinion... I admit trade is fun but can be hazardous, only a little. The base remains as such.
I am a pig, I just buy, buy, & buy, seldom sell. Once an old fart told me: (talking about land).
"Buy, always buy, particularly if it is cheap, but more importantly, make sure it is quality, and never, ever, ever sell".
Then he added,:
"When I am old and decrepit, you know, you can't get it up no more, I will ask any child that comes by me and will tell him that if he takes me out to the sun by the terrace I will give him a small gold coin."
He died stinky & filthy rich.... and a happy man, no stress.
I guess I plan to do the same, except with stocks of the companies that will be here for the next 25 or more years....
I am in no hurry, and the advantage today is that there is biogenetics, Viagra, and who knows what else they will come up with next.
Maybe someone will invent a real "Pleasure Ball", like the one Woody Allen had in the film "All you wanted to know about Sex, but where afraid to ask" (more commonly known as the Republican guide to Sex Education).
This will certainly motivate me to hang around for a little longer, and so the need to sell extends further into the future.
Meanwhile.... well just buy more as it becomes possible, if you must sell, well then, a man's gottodowhathe'sgotodo.
Do not forget that T/A is 1/3 science. 1/3 art. and 1/3 voodoo, so who knows, on a closing basis it closed above your mark, and you have a sell order right below resistance.....
Let's just hope tomorrow, (or any other day near today) the damned thing does not gap down to say 54 or something like that. your sell order will be history, and your choice is go down to market, or just turn off the quote machine, forget that the stock market exists and on to other things.
Frankly, I truly hope that Halloween comes early and they finally make up their minds that the world is about to end, so let them sell LU at 40, so what....?
1. is it the end of the Internet ? = NO.
2. is it the end of corps. need to communicate and network? = NO
3. is it the end to integrate data, voice, video into a single form of transmission (or similar) = NO
4. third world countries stop to build non existent (and badly needed) infrastructure. = NO
5. Where does LU fit in the above picture, is it a tiny company, (as in bb stock), underfunded and the like = NO.
So a few Quants made a mistake in a derivative bet.... well the banks that were the major clients and also providing the debt for the rocket scientist to go play Wall Street Casino were burned... my heart bleeds... btw I understand that the Central Bank of Italy is on the hook at the tune of $100 million invested, AND $150 Million as loans granted... that is $250 Million (the Central Bank!!)
Merriwether may actually win the Nobel Prize in Chemistry.... for converting good money into Caca.... I mean it takes some imagination don't you agree?
Can you imagine if the Federal Reserve had done the same ?
Whatever. you sell, I hold, that's why there is a market...
Good luck to you.
Z. |
