Yes... it was bound to happen sooner or later. This evening I got cold investment feet. On Saturday I gave a "buy" order for 100 shares of VFH (a Vanguard index that covers the financial sector). I figured financial companies have taken such a huge hit in recent months, that they are bound to be over sold. The markets were closed today, and following dramatic declines in overseas markets the S&P futures are pointing in the direction of a brutal sell-off when the U.S. markets open on Tuesday morning. So, with all due respect, this evening I cancelled my purchase order...
I still think that the financial sector is a good buy. I am an avid index investor, but I do think that the market over-corrects on occasion. While I am not in the habit of actively trading, I just couldn't resist the urge to follow my hunch in this case. Well, at least until I saw the S&P 500 futures down about 4% this evening.
I will probably re-instate my buy order in a couple of days, but I don't intend to run head-on into the brick wall which is a full market route, thank you very much. I would like to point out that even though our portfolio is down dramatically in the past month or so, I have not sold any of our existing positions, nor do I intend to do so in the future.
2 comments:
I know there was no way of predicting the rate cut. I own a lot of financials and I was pretty ticked when I opened down 6% only to be up 6% an hour later. Did your fund do the same?
Actually, I reinstated my buy order this morning, after the Fed cut interest rates. The market is just crazy these days. Fear and anxiety...
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