TheNiche Posted February 27, 2007 Share Posted February 27, 2007 The way the Chronicle describes it, today's correction was the combined result of a Chinese correction, a downward revision of GDP growth, and a lackluster housing market. The funny thing was that I'd been hearing chatter about a correction for the last week. It is funny how these things gain momentum and then come to a head, you know?My portfolio is down 3.39% today. Worst losers were ExxonMobil and (ironically) my hedge against Exxon, which was JB Hunt. My bet is that this won't slip into a recession. A Chinese recession would be the best possible thing to happen for the American consumer! Keeps the costs of our goods down and slows them down as a consumer of building materials. ...so I'm reallocating my portfolio assets tonight. I'm dumping the rest of XOM, holding JBHT, making a massive contribution from my checking account, and am buying into a construction company, a civil engineering firm, a dollar store, and Wal-Mart.How about you folks? Quote Link to comment Share on other sites More sharing options...
gwilson Posted February 28, 2007 Share Posted February 28, 2007 Today's drop was nothing more than a panic sell-off. This is what happens when such a large segment of the trading market is end users. They see a report on the news and they start selling their positions. Reactionary trading gets you nowhere, fast.The only sells that would have been smart today were companies with heavy stakes in middle and far asian companies and institutions.I'm not sure I'd go so far as to call this a correction. I think with the constant and stable growth we've been experiencing in all sectors for the past few years, I think a correction would be more in the 2.5-3% range. It has been funny (and saddening considering the impact they have on the market) watching all the "day traders" (aka people with a quarter of their retirement in a TD Waterhouse account) running around like chickens with their heads cut off freaking out about the recession.Today was completely reactionary. Quote Link to comment Share on other sites More sharing options...
nmainguy Posted February 28, 2007 Share Posted February 28, 2007 Today was completely reactionary.Absolutly and knee-jerk reactions will get you nowhere but deeper in the hole. I have found patience and market knowledge to be a far superior strategy than selling off then buying when all we're seeing here is a possible slight correction, a slump in the Asian market and a glitch in program trading. Quote Link to comment Share on other sites More sharing options...
TheNiche Posted February 28, 2007 Author Share Posted February 28, 2007 Today's drop was nothing more than a panic sell-off. This is what happens when such a large segment of the trading market is end users.Psst...end users are price-takers, not price-makers. A consumer-level reaction has no effect on the market. Even if it did, it would be delayed because most consumers don't track their portfolios in real time. Quote Link to comment Share on other sites More sharing options...
TheNiche Posted February 28, 2007 Author Share Posted February 28, 2007 Absolutly and knee-jerk reactions will get you nowhere but deeper in the hole. I have found patience and market knowledge to be a far superior strategy than selling off then buying when all we're seeing here is a possible slight correction, a slump in the Asian market and a glitch in program trading.Short-term plays can be enormously lucrative, but you have to lead the herd. If you're in the midst of the stampede, you'll probably get trampled. Playing fundamentals is safe, but the big money is in gauging expectations and taking advantage of market inefficiencies. Inefficiencies are the greatest in the short term, and are particularly great in times where there are high levels of volatility.Although I say that and retain my optimism, I'm playing with margins on this one, so my fingers are crossed. It wouldn't be inconceivable that I screw myself. Quote Link to comment Share on other sites More sharing options...
RedScare Posted April 23, 2007 Share Posted April 23, 2007 Sure glad I held onto my Exxon stock. It's at 80 now.Patience is a virtue. Quote Link to comment Share on other sites More sharing options...
TheNiche Posted April 24, 2007 Author Share Posted April 24, 2007 Sure glad I held onto my Exxon stock. It's at 80 now.Patience is a virtue. So is instinct. I haven't been sitting on my hands this whole time, after all. Most of my liquid assets are in cash this week. ...more news to come, but you won't hear it from me... > Quote Link to comment Share on other sites More sharing options...
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