My $10000 Dollars

Current YTD Performance: $-2193

Dow has been declining fast and steady in the past week with the exception of today. THANK YOU for giving us despaired some hope for the future of this country. A surge of more than 270 points in Dow Avg? God we sure haven’t seen that in a lonnnng ass time.

For all of you readers out there that are in the panic mode, here’s a great article to read about the speech made by Warren Buffet, the richest man in the world and arguably the best investors to have ever lived.

http://money.cnn.com/2008/04/11/news/newsmakers/varchaver_buffett.fortune/index.htm

Here are some of the key points Warren Buffet pointed out:

1) Always Invest For The Long Run
- Most of us should not be an active trader. Always go for the long-term
2) Invests in low-cost index fund
- It will outperform the majority of the stocks in the long-run
3) Get Greedy and Fearful
- Get greedy when others are fearful, fearful when others are greedy
- At the least, don’t be greedy when others are greedy and fearful when others are fearful
4) Market Will Be In Pain
- The market will take some time to recover. It will not recover anytime soon.
5) Stocks Are Cheap
- Now is a better time to buy than a year or even three years ago. Buy and hold.

As today’s stellar performance you saw today, never lose hope in the market and continue to be patient. That’s what I’ve learned so far, and that is the reason why I still hold Freddie Mac after the notorious fall of its stock price. Time after time, patience has proven to be the biggest friend in the investing world.
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I wish I had taken a screen shot of yesterday’s performance. It was the EXACT opposite of what you see below. My value has tumbled by $2300 in one day! Maybe I didn’t take the screen shot for a reason…I secretly didn’t want to believe it.

Today ended up being a great day. Various companies beat their expectations in all sectors including financial and airline. Now that’s good news. Beating the analyst expectations led by Wells Fargo (WFC) and Delta (DAL) resulted in a soaring market for all airlines and financial companies. I’m talking about 20-40% gains! If you had invested in these markets yesterday, congrats. You made the right choice, at least short term.

They’re definitely not out of the woods yet, but at least that gave us some breathing room right? Screw the shorters!