I am actually enjoying the market turbulence. No, I am not short the market, though obviously today I wish I had been. I was battered and bruised by today's action just like most everyone else. So why am I enjoying the turbulence if I am suffering losses?
I am enjoying the turbulence because it is beginning to create new opportunities. I want take some or all of my cash off the sidelines and get longer oil and precious metals. If the sell-off continues, then I will have some terrific entry points. Moreover, I do have some shorts positions that I would like to cover. I view the turbulence as an opportunity to realign my portfolio.
I note that as I write this article, the markets in Asia are being pummeled. I am not sure that will translate into another bad day on Friday, but I would not be surprised. I am not sure that anyone has a complete understanding or full grasp of the subprime mess yet. And markets tend to overshoot in both directions, so the markets could go down further than is warranted.
If the markets are causing you undue anxiety, you might wish to reduce your exposure. The markets might rebound quickly or we might suffer more pain. I doubt anyone has a solid outlook over the next few weeks. There are simply too many variables at play. So make sure that you are comfortable with your positions.
Calgary model Judith Aldama is featured in the photograph above, which is hosted at Flickr. If you click on the picture of Judith, you will be taken to where you can view a larger version and see even more pictures of her.
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