So much happening in the market, so little time.
The Business Media Fiddles While the Nasdaq Burns
–Kass Diary, My Market Outlook in One Sentence
So, what is the lesson?
Always evaluate your holdings and exposure — not on what you watch on Fox,CNBC or Bloomberg (or for that matter what you read in my Diary) — but, rather based on an assessment of reward vs risk (on stocks, sector and markets), a clear understanding of your risk appetite (and profile) and in consideration of your timeframes.
Moreover, should the market continue in a southerly route, I will guarantee you that few will admit to investment boners. These “carpet sweepers” will have told you that they saw this coming — reminding me of a Buffettism that “the rear view mirror is far clearer than the windshield.”
I would expressly take note of Rudi Dornbush’s words of wisdom that I cited earlier:
“The crisis takes a much longer time coming than you think, and then it happens much faster than you would have thought.”