Taking Stock
People sometimes ask me for stock tips. Sometimes they ask my advice, wanting a “hot tip,” or they just want to share in which stocks I’m currently tracking. It’s part of trading, I guess. You buy into certain companies, based upon what you know, what you think they will do in the future, or perhaps your “gut,” and then poke around to see what everybody else is doing. It also provides a nice means to justify your choices. Usually, I am reluctant to give out stock advice, mostly because I’m afraid to and partially because I don’t want my friends to get angry with me if the ticker in question should happen to take a dip.
This weekend and this morning, we heard on the news about the current terrorist alert regarding the stock market. Seems al queda is trying to blow up Wall Street. I’ve decided to go against my own better judgement, break ranks, and actually give out a tip.
If there’s a terrorist attack that impacts Wall Street, in any way shape or form, I will buy stock. And you should too. It will become the best buying opportunity all year.
As soon as I’m physically able to, even if I have to drag myself on my hands and knees to some brokerage hundreds of miles away, I will buy stock. I will buy a lot of stock, in a multitude of companies.
Why?
Two reasons:
If every person in the US bought stock, even one share, after a terrorist attack on Wall Street, the market would move up considerably.
Historically, the people who’ve made the most money on Wall Street did it by doing the reverse of the current trend. Most folks buying? You sell. Most folks selling? Buy like there’s no tomorrow.
If you bought stocks during the great depression, you would have made a KILLING as soon as it was over. I know, I know, it’s sometimes easier said than done, and you won’t make a heap of cash buying one share of stock. Even so, given a terrorist attack, taking stock would become the most profitable thing you could probably do all year long. It would present the only opportunity in time when the majority of people, most of whom should be buying, would turn around and sell, for no valid reason other than their own personal fear and trepidation.
Besides, taking stock at that time would be the best thing for the country. Wouldn’t that, and that alone, make you feel better? No amount of money (that you could potentially make or lose in the market) could cover that emotional cost. At least, it would go a long way towards making up for those high flying 90’s that we all enjoyed, wouldn’t it?
Until next time…
