Now that the markets are down, the opportunity exists to capitalize on it and reap the rewards. I called my advisor and invested some more $$$ this morning.
I'm Buying!!
- Thread starter drlove
- Start date
E
enduser1
enduser1 said:
To a certain point, yes. However, I have a long time horizon, so periodic dips are not that much of a concern for me. The market will recover eventually; it always does.
E
enduser1
drlove said:
Actually,
I think you are right. Save your panic until December. IMHO the central banks are just power washing liquidity into the markets. This market will turn and maybe even go up some. The problem will come in if it doesn't go up enough. Only time will tell if the liquidity is working.
EU
The problem is that financial institutions are loaded up with 'assets' that they thought were worth a certain amount, when this securities are actually worth alot less.
Question: will the recipients of this new magic liquidity miraculously restore the value of these dubious assets? The sooner the write-offs occur, the better. The fundamental value of these CDOs are impaired by the inability of the people who contracted these debts to support them. However, when massive write-offs of this debt start being announced, then don't walk but RUN to your computer and buy buy buy.
Question: will the recipients of this new magic liquidity miraculously restore the value of these dubious assets? The sooner the write-offs occur, the better. The fundamental value of these CDOs are impaired by the inability of the people who contracted these debts to support them. However, when massive write-offs of this debt start being announced, then don't walk but RUN to your computer and buy buy buy.
goodtime
Travelaholic
