It is very frustrating to be right, yet not be able to benefit from it. In history, several people have shorted the market and won big. A lot more has shorted the market and lost, including Laurence Tisch. It's not that they're wrong about the market being pricy. It's just that nobody expected the crutch to be in place for so long. I certainly didn't expect for the interest rate to go below 4%. I was wrong.
In case of market bottom, though. I was right. October 10 was the bottom. I bought some shares Friday afternoon, right at the very bottom. I would have sold those Monday afternoon for a quick profit, but I can't because the account wasn't settled and the balance was negative. I tried to do electronic transfer, but it wasn't set up right. I needed to mail a paper signature. That took time. It wasn't positive until yesterday, and I couldn't do anything about it.
Now the opportunity is lost, since the price is closing to the crash level. Can't sell now. I'll just have to hang tough.
We're definitely in deep recession. It probably started when President George Bush was saying "The economy is slowing down, but we're not in recession." Well, we are now! This will probably last 2-3 years if not more.
Even Warren Buffet's Berkshire Hathaway is declining. The party is definitely over. Time to sit this one out and get some bonds, instead.
Well, I did manage to liquidate some Microsoft stocks. It really wasn't in my profile, so I sold it for a quick profit. Hey, maybe I can do this full time! Of course not. This only works because the stock market crashed big time on Friday. How do you make money in a declining market, anyway?
Posts
No comments:
Post a Comment