Our site runs on donations to keep it running for free. Please consider donating if you enjoy your experience here!

End of the Panic? Start of Fundamental Declines?

I thought maybe we saw the end of panic market declines–but yesterday proved I was wrong on that. So with a little market bounce today in the futures maybe we will begin to get a little footing while continuing a general market decline.

To me with dividends starting to be cut and earnings evaporating the equity market will see further erosion. The key here is ‘erosion’—erosion is a long term process–in this case 3-9 months. We can deal with ‘erosion’–not so well with ‘plunges’.

Once I think we are just eroding–instead of plunging I will buy a few high yield preferreds–i.e. VER-F and AMH issues and potentially an Annaly issue.

I know today I will not be buying or selling as I have to be out of the office for most of the day–but bargains will remain to be available for many weeks-if not months.

Leave a Reply

Your email address will not be published. Required fields are marked *