It is no surprise that subprime financial market is leading the down slop to abysimal. Is this much different from the last industry wide correction of airline, auto, or hi-tech? How much is correction and how much is panic? Should I enter? double-down or pull out? There are many times, FatCat just want to cover her eyes and ears and hide under the bed. Unfortunately, the thunder dose not disappear just because you cannot see or hear it. This world is so full of that!
Still, FatCat believes that the investment is fundamentals of the company. Not the hype or anti-hype of the media.
An excellent example is IFC. It just hand out a handsome dividend. If you have bought the stock at its 52wk low a few weeks ago, you would have scored a more than 10% gain in less than a month. Again, investment is not gambling. It is not about score 10% in a month. It is about double or triple your money in a much longer period of time like 3 to 5 years. With its heavy load on consumer real estate and current political condition in the US, FatCat anticipates IFC to out perform the index after the next Clinton get into office. Not because she thinks Clinton has anything to do with the specific stock but FatCat anticipates the new Clinton administration will benefit the severely plighted low in come --thus the sub prime mortgage, credit cards and car loans and other consumer credits that focus on the low income.
