Candy Store

I am not a frequent NY Times reader but thought this article was a pretty good description of how events unfolded last week...

"If we don't do this, we may not have an economy on Monday." -- Ben Bernanke

Panic can cause a prudent person to do rational things that can contribute to the failure of an institution." -- William A. Ackman of the hedge fund Pershing Square Capital Management.

Credit markets are completely frozen, fear is everywhere, but selling is so irrationally uniform that I am starting to feel like a "kid in a candy store with his dad's wallet"...

I'll post my new buys tomorrow but anything that has large hedge funds as investors is being sold off for redemptions just as I expected- agriculture, commodities and other "quant" picks... Bank stocks have held up quite well and preferred stocks seem to have bottomed as well- I can't post the names yet as I am still buying but will give specifics over the weekend...It is now virtually guaranteed that we are in recession but with a "rescue plan" going through tomorrow and possible rate cut to go with it we might just get enough positives to offset the possible "upset" with job numbers tomorrow...

Look for a lot more choppy trading and multiple bankruptcies over the weekend...

by Vad Yazvinski |  10/03/08  |  Stocks: VIX,