Who in their right mind is selling right now?

i dont get it........you havent lost anything until you sell.

selling now ensures your greatest fears are realized.
just hang onto what you have until the storm passes.....and yes that may be a year or more........

am i missing something?

The smartest fake question ever.

Spock!! I am very surprised to see your response. To me it makes no sense because you aren't looking at the big picture.

I like Corona Beer a lot. If I can buy some beer for $10 and then later on I see that the price for those same beers is now $8, am I going to freak out? No! The beer is great and I am going to buy more at lower prices. Not the best example but if I am holding onto a great company, I want the price to decline so that I can buy more shares at a discount.

Really I want all my stocks to be down until I decide to sell. Then I want them up.

Those with margin loans may have had to raise money to meet calls from the loan provider. If they don't have the cash then they would need to sell shares.

Once these people are flushed out then the selling should calm down.

yes ... you're missing something

suppose the crash continues for the next 9 or 15 months? 3 percent lower every month, on average.

could that happen?

sure. we're nowhere near the bottom of the mortgage mess -- there are plenty of subprime and no doc loans out there that won't even reset until 2010.

foreclosures haven't peaked yet and so housing prices haven't bottomed. how many people are underwater in their house and only need some external event such as being laid off to begin the foreclosure cycle??

it took five years for this mess to be built -- you'd think it'll take more than 9 months for it to be cleaned up.

in fact, the last mess [after the housing crash of '88-'90] didn't get cleaned up for at least three years.

you haven't seen any major financial house go under -- yet. It could happen. you haven't seen any major fraud lawsuits from the Attorney's General of the various states -- sit tight and hold onto your horses, lad as there could be one as soon as this week.

what do you think would happen if the NY Attorney General charged WaMu with appraisal fraud? or Countryside? or origination fraud in massive numbers? how many contingent fee sharks would follow by suing on behalf of their "mislead" homeowners?

{I am NOT saying that those organizations did anything illegal. As far as I know, they did not. And they can still be sued in both criminal court and civil court.}

Can you say what would happen if 2 million buyers, in a class action, alleged they were mislead and that they're due damages of 100k per buyer? [another 200 billion in losses is what.] [the originators would all go broke overnight and the now owners of the paper, where ever they are in the world, would eat the losses.]

would that drive the bond insurers into bankruptcy? [i think so]

would that collapse the value of tens to hundreds of billions of other bonds?? [i think so].

Assuming that 'you have not lost anything until you sell' is wrong.

In bear market one should sell now and later buy.

In bull market one should buy now and sell later.

A wise investor earns in both.

rolling stone don't gain is wrong in the stock market. One should always on the run.

In general I agree with your philosophy but I certainly think there might be some good reasons to do some selling now. a) to reduce your overall risk during further market decline
b) to increase cash reserves for possible future buying opportunity
c) to get rid of overly risky holdings.

Those are a few of the reasons I can think of.

People that make money in the market are excellent risk managers. In markets like this, they cut their loses and sit on the side lines or go into areas that are not going down.

There are always areas in the market that make money so why stay in areas that don't.

Essential you are correct. You may consider cost averaging and bull more of a stock you really like What we had today was a traders market and it was driven by the true traders and aggressive fund managers. The DOW opened 450 + points down. We finished the day -128 down. We had a 325 point swing and that spells traders paradise. I made money twice on both the QQQQ and QID.

Yes, Sir/Madam you are mising something, if I may say so. There are a few angel here and there who are there to show you where the success is. If you're looking for someone who can assist you on the path to success e-mail me. I will give you some information regarding success.

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