This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

'Doctor Doom's' Crash Tweets Make Investors Sick

By no means do I take a "stick your head in the sand" mentality. Absolutely proceed with caution. A crash triggered by global economic strife could very well be imminent. If you've lived long enough, you realize that some level of carnage always lurks around the corner.

What irks me about Roubini is that he serves nobody but himself with his predictions. There will be a crash, just as there will be large earthquakes in California at some point. Who really cares if his version of events leading up it, whenever it goes down, plays out or if it's somebody else's brainstorm?

I proceed with two plans, Plan A and Plan B. Plan A means I consistently purchase the equities I like no matter what's going on the world. Plan B means I increase that buying as much as I possibly can when corrections and crashes play themselves out. If you implemented Plan B throughout the end of 2008 and beginning of 2009, you've done well.

Not only is SPY up since 2009, so is the PowerShares NASDAQ 100 Index ETF (QQQ) by a whopping 106%.

If you picked the right stocks, as usual, you've done well. Apple (AAPL) is up about 576% since 2009. Even less-publicized names such as Intel (INTC) have performed remarkably well, up 72% over the same period.

Of course, if you picked the wrong stocks on the 2008 collapse, you barely broke even or you got hurt. Cisco Systems (CSCO) is down about 2% since 2008. Hewlett-Packard (HPQ) shed about 47% of its value.

That's the sort of thing investors should concern themselves with: stock- and sector-specific vision and analysis, not macroeconomic prognostications.

Simply stated, macro-economists are useless to investors. As such, I really wish outlets that help inform investors would focus less on them.

Give me something I can use. Consider history. Think about all of the crises you, your parents and your grandparents lived through.

Have a Plan A. Have a Plan B. Stick to them. If Roubini is right, 2013 might end up worse than 2008, which could make the recovery that much sweeter.

At the time of publication, the author was long INTC.

This article is commentary by an independent contributor, separate from TheStreet's regular news coverage.

3 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $122.95 -0.35%
FB $95.86 0.59%
GOOG $627.38 -0.10%
TSLA $266.02 0.45%
YHOO $37.53 -0.50%

Markets

Chart of I:DJI
DOW 17,730.81 +100.54 0.57%
S&P 500 2,103.72 +10.47 0.50%
NASDAQ 5,094.8890 +5.6830 0.11%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs