300
23rd January 2008, 08:12 AM
Not good times!! The Dow Jones fell 465 points at the lowest of the lows during trading but recovered to finish only 128 points down. The headlines today in some section; "Stocks Fall Sharply on Worries of U.S. Recession". The unfortunate reality is that in the future we will probably get statisics that show the US is in a recession already. The Fed cut rates but .75 of a percent for rates that the banks lend to themselves as a way to increase liquidity. Although .75 is a a substantial cut it most likely will not be enough and more corrective action will need to be applied. The word on the grapevine is that trading tonight will finish down.
The ASX took a hit yesterday (as did all markets globally). To give a better idea of the situation, yesterday's slide was the biggest fall since October 16 1989 and at close of business yesterday the ASX was at the same level as a year ago. It really isn't good times. Superfunds will be some of the worst hit
On the RA Portfolio front, the second of the stop-loss levels was reached for the golden child of the two stocks. So, I have successfully depleted the RA Portfolio of about $400 in only two weeks - probably not the best two weeks to start a ficticious portfolio in my defence :o. It is a good lesson learnt however, to stop losing a heap of cash in the sharemarket, when you buy a stock, set your self a stop loss measure (we are using 15%, but it is a preferential figure so you could put 20% or 30% etc) and stick to it. If I had not set the exit figure, the losses would have amounted to a whole lot more. I will do some real figures later to hammer home the point.
My 2 cents.
The ASX took a hit yesterday (as did all markets globally). To give a better idea of the situation, yesterday's slide was the biggest fall since October 16 1989 and at close of business yesterday the ASX was at the same level as a year ago. It really isn't good times. Superfunds will be some of the worst hit
On the RA Portfolio front, the second of the stop-loss levels was reached for the golden child of the two stocks. So, I have successfully depleted the RA Portfolio of about $400 in only two weeks - probably not the best two weeks to start a ficticious portfolio in my defence :o. It is a good lesson learnt however, to stop losing a heap of cash in the sharemarket, when you buy a stock, set your self a stop loss measure (we are using 15%, but it is a preferential figure so you could put 20% or 30% etc) and stick to it. If I had not set the exit figure, the losses would have amounted to a whole lot more. I will do some real figures later to hammer home the point.
My 2 cents.