Thursday, April 17, 2008

Moving Forward

It is always important to reflect on the past to learn from mistakes and to understand how to react if encountered with a similar situation. With hindsight I would have liquidated with the dow at 14,000 and reentered when the dow hit 11,750, but how can you tell when the market is going to turn? With so much noise it is hard tell how the market is going to react in a volatile market. A month ago I was sure we would be sitting around 10,000, but the market has been surprisingly resilient and if you had sold at 11,750 you would be in a world of pain right now. When the market stays relatively bearish for a long period of time any glimmer of hope can cause a huge rally. Everyone wants to be bullish especially in a bear market. As a whole I believe most investors are intrinsically optimistic, but sometimes the few pessimists can ruin the party.

Google announced stellar earnings after hours today and the stock has bounced in after hours trading (currently up $76.42 or 17%). The news from Google should give tech a great jump in the opening tomorrow. Congrats to everyone holding GOOG!

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