Friday, June 06, 2008

Sell the Loss Reaction

The heck with Yahoo Finance. I'll write the blurb today!

Investors fled from stocks on Friday as the Celtics easily handled the Lakers in game one of the NBA Finals on Thursday night.  Asian stocks initially rallied as Celtics guard Paul Pierce was carried off the floor with a leg injury, only to violently sell off as Pierce returned to the court moments later.

"It was quite a roller coaster ride, up and down, up and down, up and down," said investment specialist Tia Tanaka (not pictured, to keep work safe).

Wall Street had priced in a Lakers Finals victory in five games.  As reality set in that this is unlikely, the bulls did not want to be caught long heading into the second game Sunday at Boston.

"Investors will have plenty of time over the weekend to reflect on the series and their asset allocation," added Tanaka.  "I've been recommending to my clients who want a happy ending that they overweight the Asian rim over US stocks."

Okay, the market is selling off BIG! today. 

Oil is spiking up, because folks must've left their SUVs running in their garages overnight.  It's becoming obvious that we have to act to reduce our oil imports.  I don't think the government is nimble or agreeable enough to get this done, so it's really up to us.   It's going to mean buying a hybrid the next time you hit the car lot.  It's going to take ridesharing and mass transit.  Another idea is trading a typical 5-day, 8-hour, work schedule for a 4-day, 10 hour, work schedule.  Employers will have to allow more telecommuting where feasible.

Here in Sacramento, we have a big project on our major downtown freeway going on.  The lanes are closed down.  I heard on the news that our mass transit system has seen a 30% jump in use the past week.  That's fantastic, and hopefully folks will continue to use mass transit once the freeways are open.

The job losses were also higher than expected today.  While recessions typically have millions of job losses, we're nowhere near that and it's highly unlikely. 

I think the market is on sale today, and that those who get their market orders to buy in will reap in some big profits down the road.

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