Tuesday, October 7, 2008

Correspondence

Dear flg,

When do you think the market will pick back up again?


Please note that I am in no way an expert. Furthermore, my advice comes caveat emptor. However, you will know the bottom using the shoeshine rule.

When you hear random people at the Home Depot or local grocery story talking about how they are getting out of the market, then it's near the bottom. It will be the absolute bottom when a late nite informercial comes out offering a way to get rich off of the crisis. When that happens, start buying and keep on buying.

On macroeconomic and financial market matters, the wisdom of the average person is really the ignorance of the average person. Use it to your advantage.

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