February 28, 2007: "This time its different"? Remarks and ruminations

1987 TIME magazine cover.



Every time we have had a correction since markets became more regulated and structured following the 1929 so-called crash the following economic depression that many scholars say was the direct result of an isolationist trade policy coupled with an exit from foreign challenges (sound familiar?), the media has gotten a panic wrong. They are wrong again. This is a correction, which may end soon, or may not.
The only investors who need worry are the ones that thought they were invincible and invested in many risky adventures that deserved to be shaken out - similar to the South Florida housing melt that has speculators heading for the exits at any price.

Yes, we all took a licking to a certain degree. But instead of cashing out, I prefer to begin looking for values amongst North American and European companies that were oversold. This includes ETFs that whipsawed wildly in the afternoon yesterday. And what a ride it was. Look at EEBs chart.

I am not going to list individual issues tonight. You know your portfolio(s) better than me. About 11:30 a.m. tomorrow, check the market. Maybe prune a little. But be on the lookout for what could be a nice buying opportunity in non-Asian stocks and bonds. The only Asian markets that have my attention now are Japan and Singapore, when the correction reaches a point where it is just too tempting not to take a look at these "best of Asia" countries.