Campquake Senate

Over the past month I have liquidated every stock and mutual fund
I own, converting all to ~4.75% money markets. Am I being too
conservative, getting spooked? Perhaps. Getting too far ahead of the
curve on the inevitable spike in interest rates? Probably. But right
now I would not own any stock in any company for any reason, period.
This week there was not even a dead cat bounce. The market (to me at
least) is acting like a 747 with full thrust on all 4 engines, but unable to
increase it's altitude and starting an inevitable decline to unknown
levels. The nasdaq is a disaster and the big techs (Cisco included)
are death to own. The S&P is just as bad. There is something ominous
in the air. I had this feeling once before, in the second week of
October '87, and did the same thing then. Friday, IMHO, may be a
very bad day. Warf, do you concur, or am I overreacting?

I'm nervous, but I'm still in. I have a lot of cash in 4.5% savings and some in some CDs as well.

I'm still in the black on most of my non 401K stocks. Bought ORCL when cheap, MRK, etc. It might be a good time to get out.

401K has took a beating over the last week or so. Hopefully, I have 15 years or so for that to get back!

Could be some good buying opportunities ahead!

As long as the fundamentals are there and your positions are only being affected by the overall sector or market, keep em. You may even consider increasing your positions... think of it like a sale at the grocery store. You still need the bandaids, but if they are 2 for 1, you get a few more...

If your positions suck... circle the wagons. Owning cash isn't so bad either.. the rates are looking good now.

Yeah, today sucks but where will your positions be in a year?

If it has anything to do with the value of the $ one might want to start getting nervous! I believe i heard that the CDN $ value is up to $.90 which is a 28 year high? Good in some ways bad in others!

BD said:
As long as the fundamentals are there and your positions are only being affected by the overall sector or market, keep em. You may even consider increasing your positions... think of it like a sale at the grocery store. You still need the bandaids, but if they are 2 for 1, you get a few more...

If your positions suck... circle the wagons. Owning cash isn't so bad either.. the rates are looking good now.

Yeah, today sucks but where will your positions be in a year?

Another way to think of it is getting out of the way of a car accident
in progress. After the smoke clears, you can always jump back
into the market, at the lower entry point. Stock transaction costs
are so cheap compared to prices now that it is less of a burden
to buy and sell as needed.

IMHO fundamentals tells me how good the company is, and
technical analysis tells me the acceptable price and probable
future. The companies' fundamentals are still good, but the
other signs are not. If things go bad, there is no predicting for
how long. It could be a few months, or a few years. A few
months of money markets until we see if this is short term or
long term seems to be an acceptable risk.