So the stock market (DJI) plunged to 9000 although my prediction was that it would take off the other way after the bailout (see “the pie in the sky” post on Oct 2). Well at least half of the prediction was correct – congress passed the bailout $700 billion. So do I still predict the market will go up now when the Dow is in free fall? Yep. I’ll betcha!
See I’m doing a bit of investing myself. I have 2 IRA accounts with TD Ameritrade – good company to work with, I had only good experiences with them. – So I had 20K floating around waiting for the market to bottom out so I can do some bargain shopping.
I don’t follow the “pros” advice, - I’ll tell you on another post why that doesn’t work – rather I fallow what the big investors do – like Warren Buffet – the greatest investor of our times IMO. When he started dumping billions into the market, I said to myself, time to jump in. Warren knows much more than I do and if he thinks is a good idea to invest, so do I. But the market took a turn for the worst. I’m down 10% on my investment – can you imagine how much $ Warren loss? I’ll tell you how much $0. It’s all an illusion baby! Like the Zen master Yogi Berra said “It aint over, till it’s over!” Let’s not forget that on November 4 all congress seats are up for re election. If the market goes up, all the congressman that voted for bailout will have bragging rights. If the market goes down a lot of them will join the unemployment lines. So you see, Wall Street owes them a big favor. Would they let the congress down? I personally think they wouldn’t.
But, everything is possible! – In a wicked way I hope I’m wrong and the market crashes, I’d like to hear them squeal!
27 days to November 4! Watch the stock market tomorrow!