Tuesday, March 18, 2008

Markets Are Killing Me!

Can you believe what is going on in the US markets?! Well at this point all markets, including Kuwait, are acting up -more like down! But what is happening in the US is especially disturbing. I am a big fan of financial stocks and have always admired Bear Stearn. It is absolutely shocking for me -and a lot many I am sure- what happened to it lately. I remember at some point it was trading close to $160 and that is not even a year ago. Now it got sold to JP Morgan Chase for $2 to save it from bankruptcy!


Think of Enron, Arthur Anderson, MCI Worldcom and many other big names that went under just like that. Those corporations took years, even decades to build, and all is lost in an instant. It’s a reminder of how efficient the market is in cleaning up bad practices and excesses. There is a lesson for companies, and individuals alike, to constantly look within and assess themselves before they are swept away and all that is built is lost..

6 comments:

Kenmore Sq said...

They say not to confuse price with value, the price for Bear may have been a mere $2, but they still saw the value, if not in the name, then in their building on Madison Ave!

bu ziyad said...

Never heard of Kenmore Sq!

momo said...

aren't you happy with the market today ? :D

Grey said...

I know who else having tough time with the markets , my MIL ... and i kinda like it .. Sorry Bu !

bu ziyad said...

momo: yes much better.. but since you asked I did something really stupid! I put a stop loss on lehman brothers before the weekend at $38 (it closed on Friday around 39) then Bear Stearns gets bought out over the weekend for $2 and people think lehman will be next.. so it starts trading on monday at $25 and stop loss is triggered.. now it's back to $46! So i guess the lesson is when the market panics shut off the screen .. I learned the hard way!

momo said...

your exactly right, dont watch the market when it panics! I sold GS at 155 look where is it today!
the problem is that I know i should buy not sell when the market panics hard but mistakes repeat.