The week its been…
filed in My Investments on Nov.09, 2008
Wow. I think thats a word we can all stutter out of your mouths while watching the ups and final downs of this crazy week.
Most people around the world knew about the pending presidential changes that were to take place in the United States and for this, the markets did rally. But as all rallies have been, this one like a Ford sputtering for energy and died down. With about 10% gains in the first few days, after the election this was washed out and the Asian markets showed that confidence is still not there in the markets as a whole
Some of the big news that came out was the fact that a surprise interest rate cut by the England Banks did nothing to motivate the markets. It getting to the point that many thing that global markets are being over stimulated. In basic terms, think of it like this..when you have a young child that does not co-operate with you, many are inclined to coax them into being happy with candies, but some kids are stubborn..and these markets are that stubborn child we all have dealt with…the candies are not doing anything and some, including myself, thinks its better to let the market take its course before further stimulus is taken into action.
Overall, economies are resilient and business that need to fail will do so for their own actions. Of course with a downfall of a big auto company, immediate jobs will be lost, but so will jobs in local industries that either supply, feed, house these people…its a trickle effect. One thought that comes to mind is…will somebody outside the US purchase these failing auto companies. Somebody like Hyundai perhaps? Only time will tell.
Back to some stocks that I loaded up on. I picked up some LVS earlier this week and watched it pop 25% before I dumped everything. I’m certainly glad I did so. A part of me was planning on dumping only the amount I started with and then riding the profits. What a relief…this stock fell like a stone by Friday and many are stuck holding the bag.
Another one that I was looking at was VLKAY…Within a matter of a couple of days, this stock was nearly triple its price and everyone was thinking that it would shoot like a rocket even more…ugly old greed took over many people and look at the price now. Obviously many people are holding this stock at 2 times what its currently priced at and that is unfortunate. I have said this before and will say it again, WAIT for a pull back and evaluate the reasons for the run-up and the companies long term goals. Don’t just buy a stock because some guy on TV is saying its a deal or because your barber made some money off it. Patience will prevail in the long term.
Until Next time…happy investing!
Aman, MBA
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