wagman

This Isn't a Bottom, It's a Disturbance in The Force

I'm with Freefalling. This is the first of several disturbances in the force that will be experienced until a lasting bottom is reached. We are nearing a tradeable bottom now, but certainly not the bottom.

If you are a value investor then you are buying now with funds from the positions that you have stopped out of on the fall. You pretty much have to be a buyer since everything looks like a bargain to you compared to last year, last month, last week, etc. Hopefully you are buying high quality companies that pay dividends and will still be around when the eventual bottom is reached and once again the force of optimism pokes its head up like a tiny flower in the desert ashes of overwhelming pessimism.

If you are trader or market timer then you are acting on whatever your technical analysis, previous experience and instincts are telling you to do and keeping your wits about you.

If you are neither of these then safest cash equivalents in the safest institutions are the place to be right now.

Cash as king has only just begun and preservation of your precious capital is quite an admirable strategy. When the dust settles and the next great bull market is getting it’s legs and everyone is saying how stocks are the worst thing you could ever spend your money on then you will have the opportunity of a lifetime. We are not there now and still have several years of bear market downslopes and countertrend rallies until we get there.

May the force be with you always Jedi knights. All of this will come to pass right here and not in a galaxy far, far away.