Anyone who has followed the markets or invested in them since the Japanese earthquake earlier this year must feel a bit wrung out.
Trading is a little bit like surfing - you scout the ocean for waves, then get on the board when the wave arrives. Here comes the Greek wave!
We can’t help but think that the current negative mood greatly exaggerates the deterioration in economic and business fundamentals, but pessimism can become a self-fulfilling prophecy.
Our strategy is to position such that if a rebound does occur, we’ll see a stronger positive response from our individual holdings than from its benchmarks.
When markets refuse to respond to negative news with continually falling prices, that's sometimes a sign of bottoming action. Here are two stocks we are purchasing.
The mantra I adhered to – both while leaving Colgate and sitting at the trading desk – was first to take a deep breath, and then focus on the higher reality: we had planned for this and we were in a pretty good place.
The large correction in August increased the population of depressed share prices and created buy opportunities for companies showing the Surprise pattern.