So after yesterday's brutal session, my paper losses have amounted to close to 7 percent and I believe it would have been more if i had not chosen the choice to cut losses or have invested in fundamentally worthwhile/strong picks. Mr. Gus Cosio of first metro mentioned in his blog that the next support might well be at 3620. I, however, am one to hope that it does not go that far. Today, the market closed higher by ten points; a mere ten percent of the 100 point drop of the previous day. I believe that this may be a longer than expected weakness in the market. First off, funds have to stop selling and next we have to get over our fear of buying into the market again. How long this may take is obviously something I cannot say. My long term views of the market remain unchanged though. The numbers; EPS growth, low PE ratios, strong economic numbers, etc are all pointing to good corporate valuations.
Things will probably get worse before they get better. Remember wise men would say "This too shall pass". Before then, enjoy a red Valentine's Day!
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