Monday, August 20, 2007

Holding on Tight

The good news is the cash in my portfolio is growing, percentage wise (at least); the bad news is that it's at the sake of my equities! The hemorrhaging has stopped temporarily... hopefully, for good!

I'm holding on tight to my hard-earned cash as I'm still not comfortable in investing in some of the discounted stocks on my watch list. Although they have present good buying opportunties. I have a sneaky suspicion that we will see another downdraft in the weeks and months to come, and we might not recover from this downtrend until November.

Hopefully, I'm wrong and the worst is over... but just in case I'm right, I'm taking this time 'away from the market' to identify some stocks that I'd like to get my hands on and decide if I should average down on the stocks I currently own. I'm also trying to figure out how much of my cash position should be devoted to each of these two strategies.

Once I've identified these stocks, I will try to determine their long term support levels and place a low-ball bid that just might happen, should the worst case scenario actually occur.

The volatility of late presents excellent daytrading opportunities to make quick cash but my work obligations make it impossible for me to partake in any such activities. As such, the long term view of stocks must take precendence in my portfolio at this time.

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