Sunday, March 16, 2008

more on bsc and the market

small money paid for bsc doesn't put all the financials in the same boat as overpriced icons unworthy of value -- did the shutdown of kidder and drexel in 1990 signal such?

no, market crises as deep as this START to get better when a couple of the weakest fish get fried --- deep-fried.

bsc is the first (worst?) of these so far, but be ready, it MAY not be the last.

so what to do on monday? i say fight the urge to run into treasuries, as there's got to be other worthwhile investments out there outside of our government, especially at the current rates - which will of course be going lower. pick away at financials if they get crushed enough; look for great opportunities in select corporate debt. the weak dollar does wonders for some multi-nationals who don't necessarily rely on the credit markets much. look for big exporters being unnecessarily crushed. the markets will surely start very rough but these days you never know about the close.

now, when it all seems to be coming apart is the time for risktakers to calmly step up, pick a few spots and let the offers come down to their measured bids. take your time. tomorrow, nothing you do should be a daytrade. (unless EVERYTHING you do is a daytrade!)

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