Hi Everyone,

I wanted to follow up on my post from last week regarding the market place.  As you know, I do believe that the market has considerable downward potential so I wanted to give you some more food for thought.  I am not saying that you should sell or not sell, just some more points to ponder in order to make the most appropriate decision for your personal circumstances:

• People tell me that they have lost 40% already, why should I sell now.  I think looking at what already has happened should not be a big factor in consideration for future moves.  If you do think or believe that there is a further market decline in the cards, cutting your losses can be a wise move and give you a lower entry point down the road and a faster recovery of capital.
• There is no need to look back but only into the future.  Becoming complacent because the losses are so large already, you might be setting yourself up for even more losses by giving up.
• By making your decision, look at your overall goals, your age, the real current market environment and not what the talking heads or the government is telling you.  Being educated about will help you make a decision and be comfortable about it, no matter what the decision is.
• I think it is also important to look at the scenario “What if I am wrong”, no matter how sure you are.  Nobody knows the future, although there are always indications if they are read right.

Again, I am not telling you to sell or do anything else in the market place, as I don’t know your unique financial situation.  I want to encourage you not just to sit still and watch, as things are not the same as they are used to be and therefore you should not base a decision on what worked in the past.  We are entering a completely new era, where we will have lots of opportunities, but for now, this new era is hardly in its infant phase and nobody knows what it will be except that is will be quite different from the past 30 or more years.

As always, please feel free to comment and ask questions, although I will not be able to give individual investment advice through this forum.

Cheers,

Patrick