Pacificwinner,Check this article out from business spectator....

Pacificwinner,

Check this article out from business spectator. Hopefully it will ease your concerns:

http://www.businessspectator.com.au/bs.nsf/Article/SCOREBOARD-Depression-drivel-pd20090618-T4TR3?OpenDocument&src=sph

However, I guess it all depends on your time horizons and whether you are using your own money or borrowed funds.

So that I can sleep at night my personal preference is to invest in companies that I fundamentally believe are good and I don't have any margin loans.

Thus if there is a ST price drop I'm not too concerned as my intention is to hold LT and there are also no nasty phone calls saying I've breached my LVR and I have to become a forced seller at a bad time.

As you and I talked about previously, whilst intending to hold LT, if a company's SP IMO has an unsustainable spike I will sell and hope the SP will fall back to its LT trend (e.g. GMG).

Hope this helps (and the fact the that DOW was up overnight!)

Cheers
John