The DOW is going to recover
next week, today we saw some panic and on monday the weak hands will after a
weekend of fretting cash in their chips. Then there will be a rally.
I suspect it would be a mistake to sell NZ stocks on monday, there are very
good reasons why the NZ market should not crash like the DOW and any selloff
is likely to be very shortlived.
It is always darkest before the dawn and it is in these times we see who
has the balls for the markets.
Who had the minerals to buy AIR NZ in
september when they were 15c?.
Remember one important fact, our stocks are not overvalued and any fear
induced selling should be a big buy signal. Buy on mondays lows and if the DOW
capitulates on monday buy more NZs on tuesday.
To sell on monday would mark you down as weak and scared. Dont think you
can sell and buy back cheaper it wont work. The market will open very low and
you will be the mug who sold at the bottom. If you were going to sell it
should of been weeks ago, most sensible people have been largely cashed up
since april/may . The other approach is to just hold and wait for the
storm to pass.
Sell in fear on monday morning would be like cowering in your trench when
the lads went over the top. Get a grip and enjoy the ride
Time to show those lilly livered yanks that in NZ we are made of stronger
stuff and are not going to throw in the towel because of a few bent CEOs,
dodgy techs and the ghost of a dead towel head
Nick
See IRG research reports
