Housing is down, Oil is down (who would have thought?), the economy is in free fall. Bellweather stocks like GE, AAPL, MSFT, all down. Why bother investing in the market at all?
Right now, I’m not. I’m not on the sidelines though, I’m just fully vested and in a holding pattern and that’s ok. The stock market moves in cycles and if you’ve played your cards right, even though you might be down on chips, you aren’t out for the count. Remember, nobody ever made money selling for a loss.
Stick to your guns, follow your rules and you will be fine.
That being said, if you aren’t fully vested, don’t try to snipe trades. You are likely to get hacked to pieces especially over the next couple weeks going into the two holidays.
Liquidity is going to dry up as people take vacations to visit family and do some soul searching. Volume is going to be very light in the coming days/weeks as we move into the new year but I am excited about going into 2009. We have a new president that actually seems to care about what is happening to this country fiscally and otherwise. If you want to be buying stocks, as I’ve said before, try to find those accidental high yield stocks that pay good dividends to ride out this churning landscape.
Find out what I am doing right now by following me on Twitter! If you like this post then please consider subscribing to my full feed RSS. You can also subscribe by Email and have new posts sent directly to your inbox.
