Alexander
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Platinum Boarder
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oh no! japan falling! no big deal... - 2006/01/18 16:33
It seems that when a market falls back a few percent it always makes better headlines than a market going up over 40% in a relatively short period of time. Today, all I hear in the news is how the Japanese Market is panicking, how they had to close early because they couldn't handle all the sell orders, etc, etc. Hmmm. Actually it sounds like it could at least lead to a temporary bottom, at least from a trading perspective. What's really interesting though, is that none of these news stories seem to remind us that the Japanese Market is up 43% since July '05, and this move is but a 26% retracement of the total move since then (and only an 8% decline of the total asset value). This is based on the EWJ Japan iShares. If anything, for someone who was looking to invest in Japan for the long term, these are the type of events that offer better opportunities to get into your favorite stocks at much better prices. However, don't try to catch it through the news. Instead, give it a few days and then see how the market behaves once the "panick" is last week (or last month's) news. You want to look to enter stocks when everyone hates them and no longer cares to pay attention to them. This cycle in fact occurs over every timeframe and for investing, waiting for the right time to start looking for bargains will certainly pay off much better in the long-term than being stuck bawking with the panic bunch.
Alexander
Post edited by: Alexander, at: 2006/03/31 17:08
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