Well, I Guess Fear Is Back?
So today we are obviously selling down a lot and there must be more fear right now than there was yesterday afternoon.
If panic builds and we do have a modern day crash, that should set the stage for a rally, dead cat or otherwise, which would be a chance to then lighten up. Selling along with the panicked is a bad idea.
In my post on greenfaucet yesterday I mentioned that the stage was set for a strong finish depending on the Fed news. I used that to sell my Bank Of America at $29.22 after having first bought it in 2002.
I don't like big mergers and I don't understand why they did not wait a day and make an offer on a discounted stock price after the Lehman kablooey. That the market was the same as it was two months ago yet BAC was up 50% from that time seemed like a gift to me so I took it.
Very few companies are permanently damaged. Taking
GMO action is a bad idea.
On a related note I am going to be on CNBC 30 minutes after the close to talk about, go figure, the financial sector.
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