These drops and raises on the market are part and parcel of being in it. IMHO, if anyone has to take all these swing into consideration, chances are that he will end up mad worrying about it and should not invest in the market and look elsewhere to park his money in.
I have been investing in the market for quite sometime now, and I have seen a few of these swings before, and all I have learnt during these times is, that what comes down will invariably go back up up again to bigger and better things. I even go as far as saying that all of these swings are intentionally created by manipulators, (force majeur) and of course hyped up by the media, in order that the rich will get reacher at the expense of the poorer by instilling fear and force/twist somebody's arm (the nervous nellies) into selling. Of course IMHO, while these swings are taking place, not many the liquidity in the market. Many of them, (Traders), IMHO will also be licking some of their deep wounds that they have suffered/incurred during this downturn as well. I am not a trader and I am only guessing here, but I think that some of them who are only trading on day swings and the T+3 could have suffered some losses as well, thus putting more downward pressure on the sp.
The way I see it, is that while there are people who are willing to sell and cause the downward sell pressure, there are also the ones who are willing to buy at these low prices. And that to me that spells out plenty. Yes, the vultures are there waiting to get their chance at the carcass.
After all we know what some famous investor, who also happen to be a famous multy billionaire, wrote. And that is "Be greedy when others are fearfull and be fearfull when others are greedy. Did he not..??
As such I bought another 25k shares of AOE at 4.77, knowing, IMHO, that while this price swing is on, we also do have an offer set in concrete by Shell/Petrochina, that will remain in place for at least another few months. That, IMHO, is plenty of time for the market to recorrect itself.
I do also believe, that the nervous nellies and the ones who are making use of margin lending and/or derivatives are the ones who are suffering now because of this sp drop. The people who makes use of margin lendings (I would hate to be in their pants/position now, although I fully sympathize with them), will be dreading the wait of the phone calls that they may be getting, and some of them may even be forced into selling if they could not afford to cover for the call.
On the other hand, the investors that have been in it for the long term who have only invested in what they can afford, should be wheathering the storm without much pain, and just wait for this silly situation to reverse in a more favourable one.
So, IMHO, think about it. What is going on is only a transfer of wealth from the wealthy to the wealthier. Nothing more, nothing less. If you can afford the wait, weather the storm as it will blow over as it always does.
In the meantime, the ones who have been shorting the hell out of AOE, The big end of Town that is), will be covering their shorts now and making a killing on it as well at the expense of the nervous nellies and the ones that have been forced into selling.
So this is the way I see things, and please DYOR.
Patience is what one need. But unfortunately for some, patience is also a virtue that not everyone has been gifted with.
Good luck all,
Buddy
AOE Price at posting:
$4.81 Sentiment: Buy Disclosure: Held
