No way. Charmel must have been really be so ill to say, that “a sale is just a sale!” Actually, yes, I had a bad flu, and two weeks prior my kids had taken turns having it so I fell right next in line and had it too over the long weekend. The ONLY long weekend for the next three months! So, just note that I may also be “sourgraping” having missed out on all the fun. 🙂
Anyway, I know for the most part of the last month and a half, financial markets were bleeding. This weekend, Greek elections finally comes around and we’ll see whether or not the financial markets will improve or get much worse after that. I am sure you don’t need me to tell you what to do if things come out alright (sigh of relief!) – when the pro-bailout group wins, markets will probably rally ( a little bit) and we will at least have a crack at recovery mode, providing that the EU governments sort out their debt mess and successfully put in growth programs. (The optimism may evaporate though for after Greek election we still have other countries to worry about).
If the winner is anti-bailout or have a deadlock result, the markets will definitely take a dive. How deep it will fall? Nobody knows.
So here again, I would say, if the markets dive and stocks become “cheap”, don’t get too tempted and jump in. Think “a sale is just a sale”. Due to much uncertainty still to happen if “anti-bailout” party takes the reins of government, with Greek falling out of the Euro, there will probably be more “sales” rolling in. So, don’t pick up “bargains” just yet, we may still see basement-busting prices.
For those who are going to brave the markets or simply do not have the option to liquidate, protecting stocks using options would be a good idea. I myself did so this afternoon with my STOKF7 expiring end of June — which has, a whopping Open Interest of 14,072 . There is really no indication of Greek pro-bailout party winning, but by all indications, many are insuring themselves from the worst.
It will be an interesting weekend. Rest and get ready for action on Monday!
