Okay, so now even I'm feeling a little jittery after the DOW took another plunge today to lose a painful additional 220 points. Bank stocks are still ugly critters caught up in a mortgage and credit mess and oil just doesn't want to stop going up. Gas at my local station today is at $4.09 a gallon for regular unleaded and there's much talk about gas hitting around $4.50 by mid-summer.
A sickening feeling grows in my stomach as I sift through my portfolio and assess the damage. Even for me, after touting loudly about the rebound I think is to come, and making my case for buying into this market because of it, I found myself today second-guessing. Should I be in this market? Should I be buying? Is it going to come back? What in the hell do I do now?
For all intents and purposes it is indeed a tricky question. Of course it is going to come back. It's just a question of when. Right now the markets are caught up in some very uncertain times and speculation is wild. Even the word capitulation came up today, a scary word indeed for the investment markets because it's sort of like saying the markets have given up hope. It says the markets are surrendering to the trend, and that's an ugly prospect. It means the downturn in the market could last longer than originally thought and signals more problems weighing on stocks and the economy as a whole.
Maybe sitting idle for a week or so is in order. It's clearer now that the market has not yet bottomed, and I think sitting idle just a bit to see what the market is going to do is a good idea. Don't get me wrong. If you think like I do that the rebound is coming and you have the time to wait, then stocks are still relatively cheap for the Main Streeter who has the longer term in mind. That said, I don't think anyone is going to really miss out any deals by waiting a bit.
For the moment I'm holding.
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