If you’ve been reading this blog long enough you know it’s pretty rare for me to comment on specific stock action or the market action in general – I find it almost pointless to focus on the short term gyrations if you are a long term investor – except maybe if you are looking to be buying more.
The trouble with this attitude is that sometimes people may think I’m flippant about the markets and many might assume an advisor is supposed to be all worked up and in a fluster in order to earn their keep at times like these. Well, believe me: I’m earning my keep by not getting all worked up and letting people make the mistakes they naturally want to make.
I’d start to get scared when the market STOPPED going down and there was no trading going on. It might indicate that no pros are willing to buy the stocks that some investors are dying to get rid of. Yes, lest ye forget, in order for a stock to move down there must be a transaction that takes place at a lower price than the previous transaction. That means that someone has to be willing to buy the stock you are panicking to get out of.
Not to sound too flippant but the person who is doing the buying most likely has a better grasp of the concept of “buy low, sell high” than the seller.
Thank you! I’m here all week… Try the fish. :)