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Buying Today? Or Waiting For A Better Entry Point?
Predictably, the Russian occupation of the Crimean Peninsula has affected today's Market. Are you using this as an opportunity to buy, or are you waiting to see what happens with the jobs number on Friday of this week? (My guess is that the jobs number is going to disappoint and lead the Market lower.) Your thoughts? MPS
I don't make long-term holding decisions on these short term wigglies and don't buy them when there is uncertainty from short term events. The +/-1-2% difference it might make is in the noise unless you are deploying significant part of your portfolio.
I might use pull backs like this to do sector/asset class rebalancing if already planned by buying "to buys" on these dips and selling "to sells" on the bounce back.
Short term trading for play is a different matter.
@cman: You have helped me refine my thinking about how to respond to these situations. Thanks for all of your insightful comments on MFO.
@DavidV: I have been following the defense sector in an effort to determine if it might present a reasonable opportunity for investment. As much as I do not want to see a return of the "Cold War," it looks as if the Russians are moving the world in that direction. If that proves true, I see no alternative to multiple nations having to ramp-up their defense budgets. This area of the market will bear watching. Thanks for your thoughts.
Not buying. Not looking to really sell either, although if opportunities present themselves may sell a couple of things and move into lower-risk/more boring names.
Defence sector is up today. Ukraine may trigger return to cold war. Russian Empire is a real threat .
I have completely the opposite view and that neither side can afford a cold war in the economics of today. There are a lot of people that may want to profit off of creating that atmosphere and people who grew up with the cold war legacy will always consider Russia as the evil empire.
The biggest concern I have with Russia is the threat from hackers and criminals that thrive there and can create an extensive technology mafia operation disrupting the rest of the world.
@cman: Point well taken. We have already seen significant disruption of cyberspace security with the hacking of data from Target; reportedly, that originated in Russia. When one spent the first 40 years of his life in the specter of "the Cold War," one does not soon forget the adage: A leopard doesn't change its spots.
Comments
I might use pull backs like this to do sector/asset class rebalancing if already planned by buying "to buys" on these dips and selling "to sells" on the bounce back.
Short term trading for play is a different matter.
@DavidV: I have been following the defense sector in an effort to determine if it might present a reasonable opportunity for investment. As much as I do not want to see a return of the "Cold War," it looks as if the Russians are moving the world in that direction. If that proves true, I see no alternative to multiple nations having to ramp-up their defense budgets. This area of the market will bear watching. Thanks for your thoughts.
The biggest concern I have with Russia is the threat from hackers and criminals that thrive there and can create an extensive technology mafia operation disrupting the rest of the world.
It might be too early on the Ukraine situation. It seems like the whole world is against what Putin has pulled. The coming weeks will tell.