Markets Now Approaching Fear

For the last few weeks, it has been strange to see the market selling off consistently but yet the VIX gauge stay in the lower 20′s. The VIX is now inching toward 30 and things are getting a little scary out there.

I’ll admit this sell-off causes me to hesitate to wade in. I was holding over 25% in cash before the day started and seeing prices go lower every day leads to a wait-and-see mentality.

That said, I opened a new position today which will be disclosed at the beginning of next month. I’m not calling a bottom — I wouldn’t know how to. But if a stock is significantly undervalued, that gives you a bit of an anchor. I’ve got quite a few stocks now on my watchlist and a few that probably are candidates for immediate research. I also have some names that look cheap but I can’t put a value on the company.

I try to approach the market like a no-limit hold-em game. In no-limit, EVERY hand can bust you. Any time you venture into the market, you can lose your money. You have to be sure of your judgement and analysis. Markets seem to have remembered this the last few months.

*** Update:
It’s fitting that the only stock I’d like to see come down (HRZ) is actually up.

More on this topic (What's this?)
(ETN) High Anxiety
Week Ahead Magazine: April 20, 2014
Why do I use a P/E below 20 for valuation purposes?
Read more on Volatility Index (VIX), Abc Communications, Wheelock & CO at Wikinvest

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