Dow Death Watch

Well I hope I caught one stock at its lowest as I took some money and purchased few hundred shares. Right now its up about $7.00 from when I purchased.

Of course, it's gains skimming time. It's going to be up and down, up and down for a while.

True, but I don't ever recall seeing swings this big. We've seen 500, 700, and 900 swings and the Dow has lost 20%+ in the past two weeks.

The stock market historically has gotten extremely volatile leading up to a prolonged boom. You'll see huge swings one direction or another, but as you guys are saying, it inevitably turns back up.

When is the question. Wish I knew, because I'd have a crystal ball and would be a billionaire.

What's the old saying...buy when there is blood in the streets. Well, we might be close.

Looks like another wild ride today, the Dow is up 400 right now.

True, but I don't ever recall seeing swings this big. We've seen 500, 700, and 900 swings and the Dow has lost 20%+ in the past two weeks.

I saw something the other night that showed how wild the Dow swung during the depression. Some of the highest single day gains in history came during that time.

Buffett says it's time to buy:

Buffett says he's buying U.S. stocks: report | Reuters (http://www.reuters.com/article/ousiv/idUSTRE49G36C20081017)

I like his take on the current situation: "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."

Buffett says it's time to buy:

Buffett says he's buying U.S. stocks: report | Reuters (http://www.reuters.com/article/ousiv/idUSTRE49G36C20081017)

I like his take on the current situation: "A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."

Excellent advice from one of the best.

It's important to keep in mind, however, that just because prices overall are down doesn't mean that your average Joe (I suppose that's Joe Plumber now) should go dropping coin willy-nilly on any stock that strikes his fancy.

I would highly recommend reading Benjamin Graham's The Intelligent Investor if you have little experience investing. Even if you have tremendous experience I would still read it. Buffet himself claims that Graham taught him the majority of what he knows (Buffet was a student of Graham I believe at Columbia University and the only one to ever get an A in Graham's class, or so the story goes.)

Graham's method of value investing is tough to do in the modern era (even as devalued as things are lately), but his principles behind investigating a company thoroughly before investing are just as valid today as they were 30-40 years ago. His perspective on the market is fascinating too and really comforting I found given the breadth of his experience.

The distinction between investing and speculating couldn't be more important, and Graham defines it perfectly. What's going on in the markets for the the past 10 years is pure, unadulterated speculation, not "intelligent investing."

The roller coaster ride continues:

CNNMoney.com Market Report - Oct. 28, 2008 (http://money.cnn.com/2008/10/28/markets/markets_newyork/index.htm)

Uh oh, here we go again (I hope not)

Dow Drops 998 Before Halving Losses - FOXBusiness.com (http://www.foxbusiness.com/story/markets/futures-rise-days-losses/)

Dollar up, unemployment down, good signs though.