The market is a mess–stay out! CASH IS KING!

I have decided that I should not do company analysis postings until the market settles down a bit.  The last several days of trading have seen some pretty aggressive moves. Frankly, the best advice that I can give to anyone is stay out of the market for now.  CASH IS KING!

The good news if you listened to my advice last week was that you may have already moved your investments to cash.  I did. I won’t be buying back into the market until it settles down a bit and then I will be able to ride the inevitable rise back up! Market downturns are a great way to make money if you don’t buy into that old bad advice of “Buy and Hold” that many preach.  I look at a 10% market correction as a way to easily make 10% as the market regains its losses.

Even my advice last week was a bit too optimistic – I was hoping that if the government made a deal that the market would react positively. I didn’t expect that Standard & Poors would still punish our credit rating. I did caution that we needed a deal over the weekend and not just a deal on Monday. As it was, the deal wasn’t completely baked until Monday and it was not very compelling either.

So for the next few days at least (and maybe the entire week) there won’t be any stock analysis reports until we weather all of these market gyrations caused by the S&P rating drop of the US government. Then when I do my analysis, I can make it based on a more stable price that isn’t adversely affected by events out of the company’s control.

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