More stock market correction expected

joyfulguyMarch 1, 2007

The investment shareclub met last night.

Several feel that there'll likely be more correction ahead in the markets before we're through.

The small rise after a substantial drop is sometimes called, "dead-cat bounce" - drop a dead cat from the roof of a high rise, and it'll make a small bounce when it hits the ground.

One guy is largely operating in cash, having sold most of his share holdings. Expecting to buy bargains, later.

Many seem to figure that there are few "Sale - 20% off" signs in the stock market stores, these days.

I have some money in my jeans.

Have a lovely week, what's left of it.

Smile at everyone that you meet, today - they'll be sure that you're up to something!

Give them something to talk about, around the water heater - sorry, I guess that's "cooler" (even in winter).

I find that in my rather cool house ... I have a tendency to have some of those mugs of water that I drink, during the day, hit the microwave before they hit my mouth.

ole joyful

P.S. Saw a slogan on a sign yesterday, "Maturity is the ability to ... delay gratification".

Spending some time in various countries throughout the world ... is inclined to teach us hot-shot North Americans ...

... a few things about ...

... patience.

o j

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Got a long ways to go before this even "counts" as a correction. Maybe by next week, things will be clearer?

Always liked that vivid term 'dead cat bounce'.

PS We call those water coolers/fountains "bubblers" around here.

    Bookmark   March 1, 2007 at 1:23PM
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It's been a long bull market, but interestingly enough, the total value has only risen 75% over the 10-month period. One of the lowest valuation increases of the 6 big bull markets in NYSE history, in fact.

I do expect less profit out of the market this year, as corp profits are slowing and the Fed continues to maneuver towards that "soft landing". But overall, fundamentals ain't that bad, although the usual media hysteria has the average folk rattled.

Can't be sure of anything, of course, but that's part of the risk of life, these days. Moderating risk is the best one can do, otherwise we'd never be brave enough to get out of bed in the morning!

A large proportion of our current allocation is overseas, I will cut that back at the end of 2Q07. Time to take that 25% profit from 2006 and get into the next sector. We were lucky on that one, but I'm aiming for our normal return, more in 9-11% range this year. IF, of course, I'm guessing right, LOL.

    Bookmark   March 1, 2007 at 1:33PM
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Attending last night's Shareclub may pay me well.

I had an account with a regular stockbroker, charged $125. annual rate for inactivity.

Other company accounts don't do that - what can be done? Nothing.

Not that problem with their co's discount brokerage.

Took out some shares in certificate form, cheque for cash balance, set up account with their related bank, ready to set up discount brokerage account, not yet done.

Their discount brokerage made a presentation to Shareclub last night. Found they'll give $100. for new account opened with about 50% more than the amount recently deposited in the bank, so will arrange that.

Value of assets to be transferred may count - but doubtful, as it's an asset carried with their sister co. now. They'll probably want new money to qualify.

Whatever turns their crank.

ole joyful

    Bookmark   March 2, 2007 at 3:30AM
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One newcomer said that she felt largely at sea ... substantially out of her depth, when she heard the members talk.

We told her that in investing, there are no stupid questions.

And one man who's been there for years said that, though he's been a "buy and hold" investor, that some of the people there who buy and sell, then buy again, sometimes the same stocks, after a correction, have mad more money than he. (Dratted keyboard - that was supposed to be, " ...have made more money than he").

(He thinks). He's the guy who retired last year, with no pension, is borrowing at 6% (fully deductible) and investing in assets that produce 12% (much of it taxable at low rate now, some of the gain deferred, taxable at low rate when cashed).

ole joyful

    Bookmark   March 6, 2007 at 4:05AM
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