With all of this market uncertainty and continued fallout from the sub prime mortgage mess, there's no telling how much further we're going to fall. Part of wants to tell the investment banks to lay in the mess that they've made for themselves. If we were to do that though, I imagine there'd be a run on the banks like never seen before. It would make the Savings & Loan fiasco look like a best possible outcome.
At this point everything is going down without regard to merit. No cause is necessary to make a stock drop like a rock. My company has already lost over $60 per share while continuing to hit or beat earnings estimates. Today it was announced that Bear Stearns was bought for under $300 million. That's about $2 per share. Three weeks ago the stock was trading for $87 per share. The company was valued at $30 billion two weeks ago. Now it agreed to be purchased for 1% of that value.
The FUD that is flying around now is unbelievable. The good and the bad are getting killed out there. Any sign of weakness, no matter now small, means that a stock is losing 10% of it's value. I really think that the DOW is headed back down to the 10,000 mark.
The only positive to come out of this are all the great buying opportunities. Once the correction hits, it will make the last bubble of 2000 seem tiny. You need to buy now and hold on for your life, because it will definitely be a bumpy ride. Now's not the time to invest anything you're scared to lose (not that there's really any time for that.)
1 comment:
I agree. I've already bought a few bottom dwellers that have no right being there. My company's stock sucks right now - just sitting there even after all the good news. They keep giving me shares and I keep using it as toilet paper...
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