Alarms going off

It must be true. You may not be an investor, but you might have noticed the breathless tone of the media of late, reporting on the destruction of wealth taking place in our stock markets. Once again we find ourselves treated to the same economic data that was in place 3 weeks ago, when markets treated us to one of the more fantastic creations of wealth in recent history, with increases of around 29%.

What’s new? Nothing really. Mr. Market made money recently, in fact, you could call it easy money. Like the old saw, that you haven’t lost money until you sell at a loss, the same could be said of making money. Time to take profit, take a breath. (By the way, in my humble opinion, it’s the so-called ‘smart money’ creating all this activity, not me and thee.)

But, to the title, the reason for this post. Alarms going off.

This morning my inbox started collecting “alert” emails from my online brokerage. Exxon Mobile (XOM) broke through a price barrier I set based on historic PE numbers. Target (TGT) fell through a price based on my magical 3% dividend requirement. McDonald’s is now paying 3.35%.

I can honestly say that I am no different than most: I struggle buying good corporations that most are selling (buying low), yet find it much easier buying stocks in favour (buying high), so, I am grateful for having documented my plan here in this blog. I am reminded that I have rules, and these rules allow me to capitalise on the buying opportunities by the bi-polar Mr. Market.

So, if you’ve been keeping some powder dry for these times, check your rules and act when appropriate. Warren Buffett said “be greedy when others are fearful”.

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