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Starting Friday with a Bang

Looks like a wild ride ahead–with the S&P500 off 2% on Covid variant concerns. Looks like an over reaction, but who knows for sure.

This is the time to sit back today and observe market reactions over the course of the day–not to react with selling. With stocks way down interest rates have plunged with ‘safe haven’ buying so it is unlikely we will see ‘bargains’ appear today based on interest rates–the only potential bargains today and during equity selloffs will come when (if) the ‘baby is thrown out with the bath water’. It normally would take a few days of intense selling in common stocks to drag income issues down as fear takes hold.

For now I am watching for bargains, but bit really expecting anything today.

6 thoughts on “Starting Friday with a Bang”

  1. Now the fun begins! On a Holiday and after Powell term renewed? Nooooo! It’s predictable tactics. Must have been a pile of close sell stops in place for the pros to dump into.
    Mandatory stress test for us all.
    Gotta love the knee jerk reaction into treasuries after the recent shift out of fixed rates into float and variable.
    Need strategic tax selling?

  2. The big down days tend to be disordrerly with not all issues falling equally. More opportunity to swap between issues on price mismatch. Though the profits won’t keep up with the price drops they eventually show up. Looking forward to an active day. I mean half day.

  3. Well most of accounts could use some tax losses. And most screens had very little red on G&L screens, so there’s that to watch for.

    Pfds have generally rolled over and lost a $1 or more in past month. Holding cash in such enviors is protecting the house so to speak. But Tim is most correct…. selling here is dangerous.

    One bright spot about declines. It presents an opportunity to do back door Roth converdions for qualified accounts

  4. Days like this I always ask myself “has anything fundamentally changed with the issue I own”? If the answer is no then its simply an opportunity to bargain hunt.
    Frankly I think DOW would need to drop 2000 before any bargains appear……

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