September 19, 2008, What a week!

Saturday, September 20, 2008

My wife and I was on vacation this past week and we had a great time.   However, the market had one of the worst weeks in a very long time.  There was blood in the streets.  Fear and anxiety was the prevailing mood on the street.  A week earlier, I added to several of my positions, but now I was feeling the pain from the steep and rapid decline.  My resolve was being tested, but I held on to my conviction and added to all but one of my positions again on Wednesday. 

At the end of the week, talk of an RTC solution along with a restriction on short selling made my recent trades look pretty smart.  However, it was fortunate timing more than anything else; possibly a blessing.  It is definitely too soon to tell.  The positions I added to are ICO, AAPL, PBR, DRYS, and PLM.  I don't know what will happen next week but, it seem like the US dollar has reversed its recent uptrend and commodities look to have put in a bottom.  With the treasury putting up billions of dollars for bailouts and the financial system breaking right in front our eyes, many may be flocking back to hard assets for fear the US dollar can't hold its value.  I don't know if this is the case, but it might be valid.

I'll be watching closely next week and to see what happens.  I'm reminded of the bear market of 2000 and how a great deal of money was made after we recovered from the Internet Bubble.  If history repeats itself then we will be much better off in 5 years.

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