Today was an interesting day for the stock market because people freaked out. Sure, they freak out alot these days but what was another indicator that there may be problems (among many things) was that Intel ended up writing off about a billion dollars. Considering that other companies have written off several times that amount of money (and some have written off several times less), I don’t get it.
The company (and I own shares and have covered calls and puts on them so they pretty much wash) is stable. It still is doing a billion dollars in profits. The stock market price swings are do to fear and as I have stated before, people trying to predict the future. My reminder is this – if you are uncomfortable with stocks, get out of the market. If you are interested in trying to predict the future, this is a tough time since nobody has any idea as to the direction of the markets.
Personally, my own thought is that it will go sideways for awhile. It will have some big swings both up and down. Is this good? If you are in a cash position, it doesn’t matter. If you are trying to do short term trading you may have a problem and you might want to look into options to mitigate any potential swings that can wipe you out. Try settling for less profit for less risk.
We are definitely in a period where things will get weird but they can also get better. The may be weird first and for a longer time but I am optimistic. There are too many people trying to get things on track now and there will be over compensation in supply destruction and firing people. That will change. Now is a good time to get in the training that you wanted to do on the job that you really wanted.
Business will still go on as long as people have money or services or goods to trade with each other. Let the spending in the markets continue!
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Kim Isaac Greenblatt
Business and Stock Market Swings
Tags: Business, stock market