Post by oldman on Oct 19, 2013 8:34:11 GMT 7
When there is fear in the market, this is usually a good time to slowly pick up sound fundamental stocks. For me, I do not buy from the sell queues. Instead, I put in lower buy queues as the buyer is now king. Also, I do not rush into buying as I will never know if the market is going to fall further. If the price is right, I am OK buying but I will do so slowly. As my buy queues are being filled, I will queue lower. The key of course, is only to buy selective stocks that fit your investment strategy.
As explained in my previous postings, I have a list of stocks in which I have been following. For some of these, I have not bought any stocks yet as the price then was not low enough. When there is fear in the markets, my buy prices may be triggered. This is where the homework that I have done on my selection of stocks become very important. If I were not to have done my homework beforehand, I would not have known which stocks to watch out for when the market collapses.
The main concern this time is the US deficit of US$14.5 trillion and counting. This US deficit has been there for a long time and in my mind, nothing much has really changed except for perhaps a downgrade by a rating agency over the weekend. I also feel that the US deficit is all part of a game of numbers and as the US is in control of this game, I don't think the game will end anytime soon.
If I were the US, I too would like to continue playing this sure-win game. Other countries are buying a product that only the US can produce and the best thing is that the US can produce this in abundance. The more the US produces, the lesser will be the debt owed by them as the value of this unique product is likely to decrease as you produce more. Hence, if I were them, I too will continue printing even more.
Yes, that product is the US dollar. When the game is over, the US is strong enough economically to increase taxes and balance its budgets. The losers will be the rest of the world which had bought US dollars or manufactured goods for the US in exchange for the US dollar.
This is why I still remain bullish for the short term and will continue buying into any correction. But, I can also be wrong and hence, to be on the safe side, I always buy slowly.
As explained in my previous postings, I have a list of stocks in which I have been following. For some of these, I have not bought any stocks yet as the price then was not low enough. When there is fear in the markets, my buy prices may be triggered. This is where the homework that I have done on my selection of stocks become very important. If I were not to have done my homework beforehand, I would not have known which stocks to watch out for when the market collapses.
The main concern this time is the US deficit of US$14.5 trillion and counting. This US deficit has been there for a long time and in my mind, nothing much has really changed except for perhaps a downgrade by a rating agency over the weekend. I also feel that the US deficit is all part of a game of numbers and as the US is in control of this game, I don't think the game will end anytime soon.
If I were the US, I too would like to continue playing this sure-win game. Other countries are buying a product that only the US can produce and the best thing is that the US can produce this in abundance. The more the US produces, the lesser will be the debt owed by them as the value of this unique product is likely to decrease as you produce more. Hence, if I were them, I too will continue printing even more.
Yes, that product is the US dollar. When the game is over, the US is strong enough economically to increase taxes and balance its budgets. The losers will be the rest of the world which had bought US dollars or manufactured goods for the US in exchange for the US dollar.
This is why I still remain bullish for the short term and will continue buying into any correction. But, I can also be wrong and hence, to be on the safe side, I always buy slowly.