Markets are turning very bearish these days. Here in New York this early morning 6AM I see that Dow futures are down by another 5% ! Probably one of the worst january in a long long time.
Mr Market, as Ben Graham used to put it, is in a bad mood and about to sell anything.
But there's no reason to panic, on the contrary. Although energy prices are up, although the sub-prime crisis is not over, the economy is growing and solid and some companies still have bright prospects.
I'm therefore on a buying mood these days, will selectivelly, and progressively, purchase some stocks which are oversold. As usual, for the medium and long term. I'm not in the business of predicting the short term, but I know that by picking up good companies at bargain prices it will eventually pay off. I will not say I'm optimistic on the short term, but I have no real concern over the medium term.
My friend Sébastien some time ago gave me to read "the Dhandho Investor", from Monish Pabrai, a young and bright Buffet disciple. I eventually read it last friday on the plane to NYC and I can only recommend it to you all : it's clear, sharp and enlightening. It gives a few basic powerful principles that anyone can follow, and not only concerning the picking up of stocks.
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