I just don’t get the stock market. Not 6 months ago, it was at 14,000. It then dips to 6,500 and now it almost 8,000. It just makes no sense. I know that the subprime mortage crisis and all of the bad debt really made everyone nervious but fundementally, what has changed. We are the same old country we were 6 months ago.
To me, it is all bullshit. None of these ecomonists or government officicals even have a clue what is going on. They are all guessing. The market is completely irrational because people, who make up the market, are completely irrational. These are the same people who bid up an internet dog food company to the point where it was completely insane how much the stock was worth. Their premise, is that this is the new economy and profit does not matter. Profit does not matter. Yeah, I buy that.
So, what to do? Knowing that markets are irrational means that betting on any swings or its timing is just not going to happen. The best bet to to ignore the news, don’t look at your portolio and just solider ahead. Nothing will frustrate you more than to watch your portolio loose value daily and then rocket back for no other reason than the madness of the crowd. Is it a Bull, is it a Bear or is it just Bullshit!