Friday, May 7, 2010

Crazy Stuff

Wow is about all I can say after watching the tape pretty closely the past two days.  My afternoon yesterday consisted much like many others, as I was shocked what I saw.  Whether it was some type of trading error, glitch at an exchange or some fund blowing up and dumping everything, it was something to see as the Dow was almost down 1000 points.

These foreign debt situations have happened before, and like previous ones, this will blow over.  The concern is about spillover into other countries/situations.  Add that to a market that was due for a correction, and well, we all can see the result.

If you feel like stepping in and buying, feel free.  I'm being cautious right now.  Although I've expressed caution that the market was due for a correction, and I'd be a buyer on any weakness, when we see it happen this swiftly, you have to step back and reassess.  Buying fear is the correct thing to do, but you have to be smart about it too.

There is so much happening out there.  The European situation, the oil spill, terrorism issues, etc.  They are all weighing on the mind of the market.  GGP has been fielding increasing offers by SPG, but seems intent on going with the Brookfield deal, which offers the most long term upside for shareholders.  In a market like this, when everyone is overreacting, many would rather have SPG's bid, because they can't even think about the long term.

Things are looking good at IGo.  They reported a nice quarter, and revenues should see a bump in the coming quarters due to new distribution deals being rolled out.  

Just remember that fear clouds judgement, and its important that we don't fall for the trap.  Sure, many stocks I own are getting nailed.  But I'm comfortable owning these stocks, and will welcome the opportunity to add to my positions at better prices, when the time is right.  What I don't want to hold are stocks I'm uncomfortable with, and believe me, I've held them before.  Its not fun in a market like this.  This is a lesson I've learned through experience, and quite frankly through past mistakes.

Let's see what Friday afternoon brings.

Disclosure: Long GGP, IGOI

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