Seeing red

I assumed incorrectly that the market has already bottomed and that we would be trading a range for a while. It seems the correction has some way to go. Nevertheless, I would rather stay optimistic and invested in my favorite stocks for the time being. I have already begun to decrease holdings in some companies that I believe are weaker fundamentally.

I am, as of writing this entry, down by almost 7 percent and to be honest, it has started to upset me a bit. I, however, am still in the opinion that the market will bounce back stronger before the year ends. I received a report from citiseconline yesterday, describing the market environment and why we should stay invested. The reasons for the sell-off have nothing to do with speculation and investments gone bad; on the other hand, its got everything to do with hot money movement and that investors are simply taking what they have earned the past year or soo. I would like to believe that is the case. Fundamentals are generally strong in companies i have recently favored and I am in no rush to sell due to speculation, etc.

Some companies that I have recently shored up position-wise include EDC, SCC, DMC, MBT. I am in the opinion that although these stocks are badly battered, they give us a very good and strong upside.

If in any case the losses are too much to bear there are options; cut losses, send it over to a mutual fund, and of course... turning your pc off for a couple of days. I recommend the latter, I have not done so myself yet though.