This sell off from the opening is bringing just a little deja vu for the Observer...... since I did trade through the Crash of 1986. The problem with the plunge overseas that triggers the market lower at the opening, is that any stop loss orders are triggered but at the lower price of market or the limit price-----It becomes a cascade of lower and lower prices as things keep going. Fear breeds on itself.
In each panic, the opposite of the panic is the greed---the bonds are going higher. ...and bond interest rates are going lower. Which means that for those who have have bonds or have mortgages, and have perfect or very good credit, one can sell the bonds at the top or look to refinance at the lower rates. So---in the market panic, there is always an opportunity to make a wise transaction on the other side--stay calm and look for it.
Click on the post for the current municipal and corporate bond rates, for various ratings and compare to last month, and yesterday. Enjoy.
Tuesday, February 27, 2007
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