Steven Hansen

Of Umbrellas, Dinosaurs, and U.S. Financials

it was a great article until i reached the end ......... "Would you buy a house and then a few days later sell it in a panic? No, so why would you treat your portfolio that way? In the short run the markets will continue to be down right frightening. Volatility is at a 30-year high. This is exactly the wrong time to be selling. In fact, this is the point when you start buying. No one can call the market bottom, so this is the time when smart investors start cherry picking."

Why would you buy a house today when you know you can buy it tomorrow for 20% less? If a hurricane was coming would you be shopping for a house? If you were going to open a bank account, would you go to WaMu because they offered the best rates?

to invest, you need some understanding of what will be standing when the smoke clears, and what will be in a position of strength at that time. i am not smart enough to see this now.