OK, so I didn’t save Wall Street, but I find it awfully odd that today saw a big bump in stock prices after I followed my plan last week to spend a bunch of money buying up cheap stocks.
Think about it. Last week, stocks were cheaper than they had been in decades. You could make modest investments in community banks, biosciences, and Chinese telecoms that trade domestically, etc. The panic class pulled their money out while the rest of us stayed calm or moved in with capital — conservative amounts of it, granted, but capital nonetheless.
Why wouldn’t you invest in Wall Street, now? It’s common sense that there’s money to be made in times of massive market sell-offs — not by selling, but by buying. I’m resolutely glass-half-full about that. In large enough numbers, surely the calm class demonstrates that there are people out there who will invest even when things look crappy. What is there to lose? When a share falls in one month from $28 to $2.80, which part of “fire sale!” doesn’t inspire the chintzy bargain-hunter in all of us?
I don’t know what tomorrow holds in the markets. Nobody does. But I’ll follow my own advice until it proves conclusively foolish.