The action today was a particularly good example of how a poor market can wear you out rather than scare you out.
The day wasn't particularly intense. In fact, volume looks like it was the lightest so far this year, but we slowly and steadily dripped lower all day and didn't even see a minor bounce along the way. That is just downright tiresome, and I'm sure many folks were inclined to just dump their positions and start the weekend early.
There just isn't any good reason to jump in here, especially since all the serial bottom-callers are looking wrong yet again. That injection of hope is what makes days like today so discouraging for those we were anxious to anticipate a market turn. Eventually, this is the pattern that will lead to a bottom, but there is nothing to indicate that we don't have more downside to come.
I'd like to offer up some really great advice at this point, but there simply isn't much to do other than stay patient and not be in a rush to invest your precious capital. A better market will eventually come, and if you can avoid losing money by overanticipating a turn, you will be in great shape to profit. It isn't very interesting or much fun, but I guarantee you that it will pay off at some point.
James "Rev Shark" DePorre is the author of Invest Like a Shark: How a Deaf Guy with No Job and Limited Capital made a Fortune Investing in the Stock Market. He is founder and CEO of Shark Asset Management, an investment management firm, and he also operates sharkinvesting.com, an interactive online community that serves and educates active investors. DePorre holds business and law degrees from the University of Michigan, is a member of the Michigan Bar Association and a former tax attorney and CPA. He lives in Anna Maria Island, Fla., with his wife and two children. Under no circumstances does the information in this column represent a recommendation to buy or sell stocks. Rev Shark appreciates your feedback; click here.
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