CHESSNOID

The stock market can feel like a roller coaster from time to time. Right now is one of those times I am sure. Last week we were dropping hundreds of points in the market and it was hitting every industry because of the subprime consolidation shake out. Today, the DJIA was up almost 287 points, the Nasdaq was up 36 points, and S&P 500 was up 34 points. That is really a nice bump up especially if you have everything in the stock market like I do. Stocks can make some people jittery because of all these ups and downs, even though it is just on paper until you physically sell it. I once went it on a stock with my ex-brother in law. The name escapes me, but at the time it was an oil stock that was going up and down, but then more down then up. We decided to sell it after a month, and that week some other oil company announced it was buying our company out. The stock went up 50% in 1 day. How lucky were we to get out at the right time. I only put in $400 and came out with $600. 50% in 1 month. I wish I was good to do that all the time. That was about 20 years ago.

My prediction is the market will go up and down from now till New Years. See how I set myself up not to be wrong. Actually, my real prediction will be a run up of 10% into the new year. That means the DJIA will be about 15,000. I will probably sell at the end of this year if not before. Depending how well the market is going, I may wait till the first week in January and hopefully have the January effect kick in. And with the proceeds, I will put it in the money market and re-start my dollar cost averaging and pick some different stocks from what I have now. Right now I think I have too many stocks. Diversifying is good, but I may be over-diversified.

Watch this analyst Jim Cramer and how he reacts to this credit crunch and the effects it’s having on the economy. Everyone thinks they know it all. Everyone thinks they have the answer. And I can’t knock anyone for being confident, but you should at least conduct yourself in a way people understand you and not think you are a lunatic. Cramer is definitely passionate.. what do you think of this video?