Last Friday, US release better than expected job data, this cause the worldwide market to soar. I think economy is a complex system where nobody has exact idea on where it will head to. Sometime analyst or economist is right, sometime is wrong.
Market has been bearish for quite sometime and this could be the exercise for a relief rally. After that, the fear will set in, the invisible hand will focus on the negative side. I listened to quite a lot "expert" analysis on paper or news, market is going to be volatile. On which day it doesn't? The investor is trying to price the risk now, by selling when pessimistic and buying when optimistic.
Where does the long term investor stands here? Exploit the opportunity when it arises. If you are long, time is on your side and market volatility is your friend. It allows you to buy cheap and wait for business fundamental to take over. I am bull by nature, because I believe stock appreciate on the long run and when business is doing better and better.
I don't know where market is going to, you cannot get it right always. I am concentrating in finding good company to invest, and when the opportunity arises, buy on a reasonable price.
Monday, 6 September 2010
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