So advises the old Wall Street adage. Q3 is the worst historically and today keeps the trend firmly intact.
The special news page in the Wall Street Journal website today states the obvious: “Wall Street in Crisis”
Lehman filed for bankruptcy and Merrill Lynch sold itself to Bank of America on a day in which the U.S. financial system was shaken to its core. The federal government’s refusal to provide support to potential Lehman buyers prompted Barclays and Bank of America to walk away from talks.
So what are investors who have been absolutely pummled to do a reader might ask? I have two thoughts:
- Buy microcap stocks that trade on the pinks. That way you lose your shirt before everyone else and can then boast that when the Dow, S&P and NASDAQ cratered in 2008 that one of your holding went up almost 29% the same day. (No joke that happened to one of my losers today)
- Average into money funds like Ginnies in May and jump back in the market before Q4. I do this with my long term money and it works nicely overall. I like to index and refuse to pay a sales commission to buy or sell a mutual fund.
At least Oil is going down.