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This is a bear market ... true!

The All Ords have performed as they did Monday through to Thursday last week and there are still buyers ... true!

If this were a CRASH then there would be no support levels and there would be no buyers!

Those that are postulating losses are looking at the short term fundamentals -- what the 'ticker' is saying now! Forget this ticker and understand market fundamentals and know that the equities markets will bounce back on every correction / crash. You just have to reset your goals accordingly!

This market is very liquid... a big difference between 1929, 1973/74 and 1987.

The concept stocks may take a battering but did they not do so in the real crash in '87 and bounce back very handsomely from there over the subsequent 12 years (it may have taken 9 months, so just extend your long term buy and hold philosophy accordingly)!

8=)


Also when a bottom has been reached there is such a thing called averaging!
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The subconscious anticipation of personal failure is a key feature of the human psyche. It is very common and very dangerous among investors. I expect that a large part of the investing population who fail and retreat tell themselves too many lies.

$2,000,000,000 plus wiped from New Zealand equities today. Anyone know where it went?
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>>$2,000,000,000 plus wiped from New Zealand equities today. Anyone know where it went? <<

It never existed so how can it go somewhere!

The value of shares is dictated by the last sale which capitalises the company across the board for all issued shares. It is only if (and only if) all shares in a particular company was sold would the value be wiped off. If you sell shares acquired at last sale of $1.50 for $0.50 cents today does not mean that you will get $0.50 cents tomorrrow or in 12 months time. It may actually be $2.00 tomorrow.

It is paper indication of the worth depending on what an individual is prepared to pay. Therefore you can only determine whether a company has been oversold or undersold on the *value* of the business! The underlying P/E rations and core assets!
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