These are very exciting times
By Ellis Martin
I couldn't be more excited about the current downfall in the markets. I'm extremely optimistic, giddy even. At this writing I see that the TSX Venture exchange has dropped almost 10% in just 3 hours this morning. I believe that there is a massive sell-off panic as retail investors believe that they should be more liquid right now and they are afraid of what they think is coming. They are taking losses instead of holding on to their precious shares. The lemmings are jumping off the cliff into the abyss. Paired with this is the short selling that must be happening during this time. Short sellers are hitting a plethora of companies with the almost certain knowledge that when it comes time for them to pay for the shares that they've sold short, they'll pay a lesser price than what they sold them for, thus winning, and they'll continue to do this as long as they can. This is especially true if the market continues to fall as a result of so many factors, the most important being the mass media hype about the failing mortgage and housing industry in the US. This is being driven by the media and huge profits are being made by short selling right now. What a manipulation! But, I could just be dreaming all of this logic up. The short sellers win on the way down and they and other investors win again on the way up when they buy in after the bottom is hit, surely to be followed by yet another sharp increase in stock and commodity prices in the resource sector.
So my unsolicited advice to you, keeping in mind that I'm a broadcast journalist and not a financial advisor or professional is this.....if you like a company or stock whether you are a current investor or not, consider accumulating stock if you have the money for this very risky endeavor, while the prices are almost shamefully low. You may win “big time” when the market turns around as it most surely will. You may see gains much larger than last fall or spring. This massive selling today and all this week is way too large for anything less than a large emotional reaction to media hype. It's unnatural, as fast as it's going to bottom, it will spring up to incredible new heights all over again. I think. I can't say for sure. This is merely my opinion, but I've been in this business for a while. Do what you want. Speculate or invest at your own risk and be sure you are prepared to lose your investment if that is what happens. The time to buy IS when the market is low. The time to sell is when it's high.
One more thing, if the companies you are invested in are well financed, have money in the bank, a great management team and fantastic resources, why would you sell your position during this time period? Why would you take losses now if you could afford to wait for a market turnaround? Does that make sense? Do what you want. It's your life. Have fun. Live well.
