Caution! Thursday, June 26, 2008
Posted by ei-forum in Investing.trackback
There is really no need to be a hero today.
Taking into account current market conditions and volatility, we would strongly recommend to adopt a wait and see attitude - keep on monitoring your watchlist but do not try to catch a falling knife!
There is too much uncertainty, speculation and unwinding of positions for the average investor… with so many professionals forced to de-leverage - sometimes from 30+ to the mid 10s - there is simply too much risk in the market.
Until we see what the next round of earnings have to offer it is going to be extremely difficult to value most of the business prospects out there, even for the long-term investor… you might see the occasional rally in the following weeks but more likely a strong downtrend.
There is no hurry, we will definitely witness a log and hot summer!
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What you have posted is interesting. Here in India, i have been observing lots of changes in biz dynamics. Overall the effect is negative. Preservation of capital has become very important.
Thanks for your comment. Indeed, despite some very interesting investing opportunities across the board - both for private and professional investors - capital preservation is the name of the game until we have a clearer perspective on what the future has to hold…