What we are seeing today is a very rare thing. This is what capitulation looks like. This is what happens when folks give up on the market and are so afraid that they want out at any price. You don't see action like this other than at truly historic times, and that what this is.
That doesn't mean you rush in and buy into the teeth of this decline, but the good news is that if you have cash, you are going to have some fantastic bargains to pick from. The bad news is that there is no way to know how long this will continue before we find a low.
I'm making a few moves in the ETF Shark newsletter, which is up over 5% this year and holding a lot of cash. When I hear the serial bottom callers given up today, I know that it's time to start looking for plays.
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Rev Shark Blog Patience Is the Key 10/6/2008 10:27 AM EDT Decisively breaking 10,000 might finally wash out the weak hands.
Rev Shark Blog The Search for a Catalyst 10/6/2008 9:08 AM EDT On big down opens, traders have been playing the bounce, but what reason do we have to bounce here?
Rev Shark Blog Clear the Decks and Hunker Down 10/6/2008 7:44 AM EDT The market maelstrom continues, and I'd wait for calmer seas before investing again.
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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