There is an unknown amount of downside. Anyone looking at fundamentals on a macro scale is not going to get sucked in by a little drop. Most of the talking heads who said "time to buy!" in November are now waking up to the reality. It's time to trade, not buy, IMHO.
Thing is. Where do we call it quits and start thinking survival instead of investment. This level problably differs from person to person. I Think a lot of people are scared they lose a point of entry if they dont start going in now. Thing is Im getting scarred we have only seen the ears of this Hippo and that markets can drop another 50%. Dow levels of 4000. We must problably start to look at were the worst case scenario is . Whats the forums opinion on worst case scenario levels?
How about the best case? I think that's easier to pin down. Even a bad case that isn't the worst is: countries start defaulting, leading to a pack of rabid black swans pwning the financial world. That isn't even very hard to imagine.
I guess I am one of those bottom feeders, but then again, I amnot that interested in being right at teh bottom as there the mud gets in yr eyes & seeing in any direction is difficult. The question to ask is: How much of the "forward price" as set by the current market is based on emotion & how much is based on a low earnings period coming up? I maybe a little too naieve / optimistic but I fail to believe that the downturn will completely erode the earnings of some solid companies (PPC, SOL, GND etc) as predicted by the share prices. I am re-investing any spare cash into increasing my positions & takig a view that even should they fall a further 10%, at least I've bought after the 50% fall to date :-)
Simon, why not? cause you are employed by SFM to provide education...eduction which on is prudent and the right thing to do...not to be equated with the most profitable things to do...cause we cant rely on luck
I am another of the bottom feeders, sorry i took so long to comment, i just comment more on my own long term forum nowdays as there are people that actually discuss our ideas.. lol.. but i am accumilating shares as well in these times as i gather cash from divs etc. GND being my favorate... As Simon said, we will have to wait a few years, but i am 100% sure our strategy will turn out very profitable in the end...
Chartist, thats not the case, i provide my ideas and views and if anyone is interested they can read my comments, my idea of creating a long term forum is to discuss long term strategies without people critisizing the ideas on every occation as what happens when short term (only) guys get their hands on the comments. so now and then i do say my bit here and if anyone is interested they can here... as Simon says, i am not netnanny, he is hardcoded and here to stay. lol...