all the retial lemmings in the market spend so much time reacting to the small details, irrational exuberance or negative irrational macros - they lose sight of the big picture: dollars and sense and historical performance.
While there are good reasons to short laggards, or move cash out of the market, negative fundamentals matter - again, dollars and sense - and market timing the negative blips on performance macros is for losers and analysts paid to worite what they think might happen.
Over time, staying invested in solid companies pays. Period.
Ain't going to be no crash, so my money stays invested. Great opportunities abound when the lemmings run to the sell counters to sell their shares to the big money on Wall St.
You are absolutely dead on accurate. I would also add that even when there are massive corrections in the market, there are companies who's stocks counter the prevailing trend and go up at a steady pace. Some stocks are more subject to being blown back and forth by general market swings than others. Knowing which stocks those are is not terribly difficult, but it does take a bit of reading and studying, and knowing the ins and outs of the stocks in your own portfolio.
If you did the exact opposite of what the majority does, you'll make more money. I agree, no economic meltdown is imminent. The second half is still expected to come in at with at least a 2.5% GDP. Speculators and hedge funds are just using small economic problems to panic investors and increase volatility.
The Coach store had business as usual this weekend at my mall. Consumer spending isn't dead.