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Lessons from a Market 'En Fuego'

Investors who bought during the downturn of 1929 to 1932 had never seen INDU 42 level nor even the 470 high of 1929 in their lifetimes. And they were rewarded through the decades handsomely.

Then those investors who bought the massive downturns in the 70's and early 80's will not see those levels below Indu 1,000 ever again in their lifetimes.

This is the 3rd chance within less than 100 years that an unprecedented major global crisis has erupted.

This type of crisis don't happen so often in one's lifetime and for most investors and most likely will not happen again in his/her lifetime.

This is the lifetime buying opportunity of present day investors.

There is still some good opportunities for investors who missed the March 2009 bottom; SnP was only able to recover 45% of the total loss from Oct 2007 to Mar 2009. 55% more to recover with higher probability SnP will be back to 1576 on or before March 2014.

This 9 years of secular bear market starting year 2000 have gone long enough and deep enough for most people all over the world to learn their lessons and yearn for better times ahead not only by wishing but by actually taking actions to prevent such suicidal dot.com and housing bubbles to ever forming again in their lifetimes.

It will require another 20 to 30 years before the new breed of investors and corporate managers to become too greedy again and push their greed to the maximum not unlike past bubbles.

That would be the right time to sell equities bought during this downturn depending on how old we are today and when will we need the money for our twilight years.

Lessons from a Market 'En Fuego'

The greater risk at these levels is to the upside.

For investment purposes; I would rather lose 10 to 30 percent on a lesser risk of the markets going down than risk losing thousands of percent over the course of the next decades.

We may never see 667 again for SnP500 in our lifetimes.