$700 BILLION: are you getting scared already?
Is the US government really serious? Just pump 700 billion dollar into US banks – tax payers money you mind – to save the banks from their own stupidity? Apparently finally the economic bubble is getting rid of its thin air. And it is time to get REALLY REALLY scared of what’s coming for all of us.
Yes, I know, the Dow raced up again yesterday, especially because the european governments united and decided to release $ 2 TRILLION onto their financial market. They are all out of their mind … and noone knows what will be the effect of such massive actions to ‘restore confidence’. Well, it doesn’t work for me. And already today the Dow is grinding to a full stop.
So it is time to get scared.
And, it is time to focus on OPPORTUNITIES!
Although this ‘crisis’ was mainly due to failing banks, almost all stocks were going down with them. I was checking on Apple (AAPL) during last week. On thursday it dropped to $86 and i decided now was a VERY good time to buy some apple stock, because usually in such a hectic market, ‘riding the waves’ is an interesting option for solid stock like Apple. And because I ‘knew’ the european plan would have a far better chance on having an effect on the stock market than the US plan.
So, I got $10K worth of Apple for $88.90 and sure enough this monday it soared to $115. That’s a whopping 29% increase and earned me around $2,900 in 4 days.
Of course you need to be very selective in what kind of stock you buy at this time. Don’t buy financials or automotive. Way too risky at the moment. But with stock like Apple I can recommend ‘riding the waves’ of stocks going up and down in extreme market cirumstances like last week. And probably the weeks / months ahead will show many more chances.
One word of warning: do not try this when you are going to need the money you are going to invest within the next 3-5 years! There are no guarantees. Just big, big OPPORTUNITIES !
October 29th, 2008 at 5:56 am
How did you buy 10k of Apple stock with only 88 bucks?????
October 29th, 2008 at 6:36 am
Ahem, at that moment the stock price was $88.90 … if I knew how to buy 10K worth of stocks with $88 I would be a multimillionaire within a few days
October 31st, 2008 at 2:40 pm
Thats a nice story, but I would be very selective in doing such things, especially if you are not thinking long term.
In the current market, the same way it swings up, it also swings down. So if that 10K is not extra money floating around, don’t put it into stocks otherwise you could easily lose 50% of the value.
There will still be a lot of volatility in the market in the following months, and when firms disclose their 4th quarter results, things are likely to once again go even further down.
P.S.
The bailout may be to save banks due to the stupidity of the executives, but if those measures were not taken, things would be worse.
This whole financial crisis started to go deep down with the collapse of one firm…Lehman Brothers. Now had AIG, Morgan Stanley, Freedie, and Fannie gone the same way, the DOW would be at 2000.
Additionally, the market is currently inflated because of the 800 financial stocks or so that are on the ban list.