Monday, October 06, 2008

Yes, it`s hard to buy when everyone else is selling: Did you think it would be different?

Random Roger did a posting last week about thinking contrarian, after large moves in the market. Obviously, perfect timing remains, as elusive as ever, yet the message is sound.

Although the world hasn't changed notably since August, the stock market acts like it has - witness the ginormous move of the S&P 500 today. In Canada, our major index dropped by 10% at one point.

Getting into the market, or rolling over double short ETFs at this point makes a lot more sense than buying more double-down exposure, as a rule of thumb. You need to think about that when idiots like Cramer are screaming to bail out of the market.


The Confused Capitalist

No comments: