I did say at the last post that I was loving the volatility. For the last few days I’ve definitely getting a good exercise at patience. It was quite tempting when I look at the prices and they are looking cheap enough to buy. But before any buying, I am looking at volume, which had been decreasing following the steep selloff, if they are starting to recover or still even getting thinner, that’s a good indicator. Bargain-hunting is not my strongest suit, but I’ve been enjoying so far, seeing that the values like PE ratios are lower (than 17 – usually an indication of fair value). I can buy more shares or just keep extra cash for future positions.
Now about that question on whether or not “the sky is falling” — here’s an opinion from Larry Fink, one of the co-founders of BlackRock (who invests over $4.3 Trillion in assets) says, this is an old-fashioned correction. (For the US market most importantly and affects everyone one else) I’d tend to believe him, in a similar vein, I believe the financial market is transitioning from the “sugar high” of central bank stimulus, to something more organic and sustainable economic growth from the exchange of goods and services, of each one of us making up modern society.
We do have to make sure whatever we are getting into is well-within our risk profile and timeframes.
Here’s the full article and videos.
http://www.bloomberg.com/news/2014-02-05/blackrock-s-fink-calls-market-decline-old-fashioned-correction-.html
