As soon as you read that post, you will realize that most of what I have written here was right on the mark. Why, because most of what has been written by the REAL experts during the last few days, is in that post. The difference, I've been saying it for the last several years. So, go down to the bottom of this page and click on "old posts".
I need to put something together that deals with the lack of cash flow in defaulted MBS. I need to think a bit more and I need to try to find out more and I really don't know where to look.
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3 comments:
Is there any investment sense in buying into the firms that benefited from the bailout?
Before doing anything, the savy investor goes through a risk/reward analysis.You look at the price ranges, highs, lows, moving averages & etc.)of a stock to determine where the current price falls. Then you make an estimation of the probability that the price will trend higher or lower by looking at the direction of the market in general and your sector specifically. In the current environment, there is no easily disernable trend just a ton of volatility. That is, the risk reward is heavily skewed in favor of risk for very little reward.
So, the real answer is, look at Goldman. If it is trading near its recent lows, it may be worth a shot. I wouldn't touch a bank with a fifty foot pole.
In this market, stick your money in an FDIC insured account at ING Direct and sleep nights.
In the market, there is a very wise expression, never stand in the way of a moving freight train. Right now, most investors are looking for an up-tick to sell into especially in the financial sector.
Too much risk, not enough reward.
Good advice Harry, and I'm following it. Now I have
two CDs at ING Direct. With over 4 percent interest,
I'm betting that I do better than most traders in the
next couple of years. As for my remaining stocks, don't ask. Well, if you must know, I hoping that
Solar will take off when Obama takes over. But I wouldn't bet the farm on it.
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