It seems the market started to sweat a bit today about the shutdown and the pending debt ceiling issue.
The Dow was down 0.4% although the S&P 500 and Toronto were down only very marginally. Actually a good number of out r stock picks were up today. Melcor was down to $19.06 and I believe it is quite attractive at that price.
Futures tonight are suggesting the Dow will open down 32 points. This afternoon Obama said that Wall Street should be worried. So far it is not much worried.
It is certainly possible that we will see some ugly down days ahead. Some people will have sold out of fear. If we did that every time there was something big to worry about we would never own stocks. So, while it could be a rough ride I have always found that basically riding out the storms has worked well. If stocks happen to decline materially I have cash and will be buying. I really can’t predict where the market is headed in the short term and that has never been my strategy. I react to what the market does and I try to buy bargains and do some selling high and buying low. Selling low has never been part of the strategy for me.