Buy, Buy, Buy!!!..???

FD01AA37-337A-4108-80CB-E8CA2973627AA flash crash is upon us.  The lowest I’ve seen the DOW drop so far is -1500 points and the bounce came quicker than I could snap a screen shot for this blog posting!  What we are experiencing is a Volatility Expansion from several factors.

the #1 reason for today is the short covering of those traders who’ve been short the $VIX forever.  They are finally paying the piper after months and months of continuous profits from a very high risk trade.

the #2 reason is the result of Institutional selling; Leveraged hedge funds who received margin calls.  Mutual funds selling their big winners and Pension funds raising cash.

What is The individual investor to do?  I’ve personally been holding a large position in cash for several months.  I’m putting some of the stash to work today.  I am purchasing the Hotchis & Wiley Value Opportunity fund (HWAAX) which is transaction free at Schwab.  I am also purchasing the Oakmark Global Select fund (OAKWX).  These are funds that have been on my watch list for a long time.  I am buying a 1/2 position today and will add to these holdings as the market continues selling off.

We are in a short term market panic but this is NOT the time to panic. Let the institutions panic and profit from this by exploiting this opportunity.


3 thoughts on “Buy, Buy, Buy!!!..???

  1. the only concern I have is I have some of my HSA invested, and I’ll be using a large chunk of it soon to pay for my wife’s upcoming labor. I’m not super concerned, though. I’m pretty sure everything is going to be ok!

    1. Hi Joe,
      I think you’ll be fine as long as you won’t need the distribution in the next week.
      This is the FIRST big sell off in over two years. I believe the market will find stability soon. It may have further on downside, especially tomorrow morning but between now and the Fall, things look rosy.
      Take care,

    2. Hey JOEHX!
      The market has ramped Up since we corresponded last week and it’s only been a week! If you can move so me of that HSA money to cash/money market I’d consider doing this if I were you.
      Just giving you a heads-up.
      The pint I made a week ago is this; if the correction makes one nervous, then one has too large of an equity allocation (stock funds) and one should hold more cash.
      Here’s blessing to you and your family.

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