What a week it has been, and it isn’t even Friday yet. I could have given his post a sensational headline just to bait a couple more page views, but I felt that the focus should be something else that matters more.
Beyond opportunities, stock prices and numbers, what’s real?
Even before the stock markets opened on Monday, I was expecting a sea of red to flood the screens. I wasn’t the only one. Greek banks were basically KAPUT, and there is simply nothing the Greeks could do about it. Many are simply resigned to their fate.
Not just the Greeks are suffering. There are Albanian migrant workers who are being cheated and unfairly treated. For some, even the employers are victims of circumstances. A search for better lives turned out to be a nightmare that just wouldn’t end.
“At least thirty families have relatives working in Greece, but the money does not come any longer and they cannot pay me,” said Altin, the shopowner (in Albania).
What Goes Up, Must Come Down
Far away from the drama in Europe, the China stock markets were in a turmoil of another kind. Massive ups and downs are giving retail investors sleepness nights, especially those who have no clue what they are getting themselves into.
Wang Yan, a 26-year-old who works for a publisher in China’s eastern Zhejiang province, says her friends are too terrified to even check the balance their online trading accounts.
Is it a case of searching for the greater fool in the giant bubble? A while ago, I came across this wonderfully named Chinese company called SeaRainbow Holding. Unfortunately, I’m pretty sure there is no pot of gold at the end of the rainbow. How can there be any gold, when the company was trading at an absurd P/E ratio of over 10,000?
Fast forward to today – the company is priced with a “modest” P/E ratio of over 6,000. Half the madness, is still madness. Just today, it fell by the maximum daily limit of 10%.
Rebalancing Index Funds
What does it really means beyond the green and red stock tickers? People could lose everything just as easily as they could double their money. For some of us, these are crazy times indeed.
I guess I’m contented and glad to be sitting here with the relative safety of my home and stability of my country, watching the world through my LCD monitor, enjoying a cup of hot tea in my air-conditioned room.
I wonder how many people would kill to be in my position?
The markets panicked. I was happy to pick up the 1-2% discount on Monday and top up my index funds. A wise man once said – ‘Be Fearful When Others Are Greedy and Greedy When Others Are Fearful’. I’m pretty sure many of you know who he is!
Live life – cheers!
More Than Index Investing
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