Kui

Trust me toots. I do things by the book... somewhat. LOL! All I'm saying is that I wasnt there for the riot cause I golf on those days(Tuesdays) I wasnt taken to the slaughter house cause I knew something like this would happen sometime this year; when I heard about it on the #3 Hole teebox, it didnt surprise me one bit. Dont forget I was only off by like a couple of days when I predicted March and/or August-Sept that this would happen. Besides this wasnt too bad. There will be days in the future where it gets so bad that the market as a mandate freeze all trading on such and such a day if there is a huge one day loss.

To answer your question first off. No... there is no need to be concerned after this one day correction. Now the folks that need to hear this are the idiots who are trading in a fit of panic. I say so and believe it philosophically because only idiots like sheep would jump on the band wagon in droves leaping over a cliff to their doom. Sheep have been known to do this. The "wolves" didnt even start or engage in the chase. They merely watched from a hillside at the chaos and on Wednesday got a free meal at the bottom of the pit (and profited from it). I'm not one of those wolves, as I said... I played golf. LOL! That's what you and the world saw on tuesday. Keep in mind Debs, this may have been a good thing. Hint...hint... Too many sheep puts a detriment on the livelihood of the whole herd. I actually have a headache today, not because of the turmoil but because my eyes keep rolling back at hearing the nonsense reasons for Tuesday. Here's what I learned over the years. People hate it when I use these silly analogies all the time, but this is the best way I can explain it....

"Many people know how to swim and do so very well. What will get them into dire trouble is not understanding the waters they tread in." - Kui

You can apply this principle to just about anything out there. One may be very learned, but do they no how to teach? Many know how to enjoy food, but can they cook? Many can operate a vehicle, yet do we not see too many who do not know how to drive? Anyone can know how to play cards, throw dice, pull a slot machine lever, yet in no way should they ever run or work within a Casino! Them snots who live in Seattle drink a lot of coffee, yet I know these louts know nothing about growing and harvesting it but they truly believe themselves top be the "coffee experts". You see... too many people partake in things where in truth they're quite oblivious to the environments which they dwell in when partaking in it. A big one that irks me is the stock market, which includes many licensed security brokers who dont know their rear from their elbows. I had been one of those idiots years ago and I learned from it. You can quote me on this one as well! "Many continue to live the life of sheep instead of a shepherd."
For your pop's investment and for your school's/work retirement fund, "be sure not to put all your eggs in one basket". Remember that 'lil back and forth I gave you on IM? Hedge or diversify your money so that a loss in one sector is a gain for you in another. Heavily invested in a bank? Back it up with equity in gold in the case where a bank may fail. It can be as easy as groceries being to high... perhaps a small garden on your property. Them interest rates too high on your credit cards/loans? I say invest in those very institutions (other than borrowing) to reap dividends so that your interest rates are cut down to nil. Electric/heating for your home, gas for your auto to high??? Perhaps reciprocate that expense/loss with an investment/gain return in the energy and utility market Debs. There's one hometown company I have for you and it is doing me very well. PPL Corp (Allentown, PA) is an energy and utility holding company, that engages in the generation, transmission, and distribution of electricity primarily in the northeastern and western portions of the United States. PPL Corporation (NYSE: PPL) on Friday increased its common stock dividend by 11 percent. With this increase, the dividend will have risen 130 percent over the past five years. So you and your dad dont need to know Greek to inderstand what I'm getting at. There's a big difference between you and the idiot. The idiots believe because they know how to swim, they're experts in any environment(water) they tread in.


LOL! Let me take my LDS priesthood hat off and now just don the securities hat on. You'll get this large correction when there is an exuberant market. What is an exuberant market??? There are a number of factors. Again with my analogies! $16. for a bottle of Budweiser is quite exuberant isnt it? Well that's what is going on in the market so to say. People unaware of the true environment, being oblivious to the true worth/situation of "stuff". $10 for a Bud is exuberant enough but if it can go up to $16, you'll have and cant blame people engaging in these sort of trades. You can now see that at some time you will get a correction in the market. I always use the term "thinning out the herd". Take a given market for example.... another analogy. I have a bigcat who's a big mover and shaker with buku $$$. This bigcat has buku xxx amount of bud in his fridge that he initially got at $4 now up at $16. He wants more yet $16 is just too much for more. How can he go about getting more? At his initial buy of $4. he can dump half of his initial stock and offer his xxx amount to $8. per bottle/share. What has he done as an indicator? He let all suckers realize that what they have isnt worth $16. Thus... the fall and the confusion/panic of those who bought/held their shares at +$8.00. Should they hold or cash in? Those cashing in cause the prices to fall. Those who are holding are like guys finding it hard to leave the craps table after a huge gain followed by a string of losses. The panic/confusion is due not so much at a loss of initial $$$ but a loss in built up capital. However... the panic can potentially cause a loss of initial overhead. Call it wrong time, wrong place, wrong stuff to get themselves in. Was this simple to understand??? I'm not trying to stupify the reason. It was quite hard to come up and put it in this sort of example. I sure you got the drift now.

At least I know you look up all posts and messages Debs. I'm sure you have got a clearer picture now than before.

End note... sorry for all the typos and all redundancies. The theirs/there's/they're, an/and, no/know, new/knew, is/are, aint/isnt/arent, by/buy, who's/whose, and so forth.

__________________
The sure provisions of my lord,
Attend me to all my days.
O may thine house be mine abode,
And all my works be praise.
There would I find a settled rest,
Where other go and come;
No more a stranger nor a guest,
But like a child at home.

My Shepherd will...

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