PASSENGER LANDS A PLANE
April 18th 2009 09:55
Illustration pic. Plane abou to touch down at NAIA
Read that AP story that came out on Yahoo! April 13? Here's the link: Really Long Link
Well, I am not re-issuing it. It wasn't mine in the first place. Besides, to be honest, it is a nice story but it is not that spectacular a story if you ask me. I mean, Doug White, the passenger who landed the plane knows how to fly a plane and, therefore, to land a plane – albiet a different one.
Never mind that the plane that landed him in the AP story was not the kind of plane where he logged 150 flying hours. It will be the kind of stuff movies are made of were he an ordinary passenger who has no actual flying experience and yet he was able to land that plane.
So, why am I resurrecting it?
Believe it or not, the reason has to do with the world economic crisis that we are currently experiencing...
Well, it is like this: I am a newbie in the world of investing. Yet, I am convinced that despite all the hardships that has befallen us (no thanks to the Wall Street Financial wiz kids and the former movers and shakers of the humongous failed banks), the fact remains that there is a lot of money to be made in the stock market.
So, what has flying planes and the stock market got to do with each other? A lot, if you ask me, though it was the heads of the auto industry that showed more affinity with them (planes) the first time they went to beg alms from the U.S. Congress.
But then, of course, this post is not really about flying planes. Instead, it is about one's abilities. As the Market Newbie (in Orble) my advocacy is to help eradicate poverty (a very tall order, I know) and convince every single new investor who would listen to learn the ropes of the trade.
I am not saying that everyone should become a pilot (if you get my drift). In the first place, not everyone can be. Okay, I'll admit, one of my wildest fantasies is to be able to fly and eventually own one of those VLJ's (very light jets). But we all belong to different circumstances in life and we all have our own preferences. And imagine how many control tower personnel will go nuts if everyone who wants to fly buys and pilots their own aircrafts!
Bottomline, however, is this: It might be a good idea for anybody who will venture into the equities market to have even the most rudimentary knowledge on stock market investing.
Doug White, in that AP story (in case you didnt read it) had to land that plane because the plane captain died almost as soon as they were airborne!
Sure, you will probably not have the same life and death situation when you are merely investing and you are not doing it while seated next to a maniacal acrobatic pilot who is trying to find out if his plane can pull out in time from a nose dive at Mach 2.
Still, wouldn't it be nice to know what to do when nothing seems to make sense - like when there is a worldwide economic crash? To some people, that will also save lives.
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Comment by Fobzy
Fobz
Comment by Market Newbie
Gizmo Peek
Stock Market Punk
Comment by british bulldog
There is an english word for your mails called 'whimsical' which means they are perhaps a little 'surreal' to link an experienced flyer landing a plane to the vagaries of investing in a bear market bullish rebound.
Please remember that markets can't just go down in a straight line,so they have to 'correct up' on the way down and we've had several bouncebacks ( the most recent prior to this being Nov 20th to Jan 6) that didn't last before a new market bottom was made.
This particular bounce is based on banks being oversold and making a little money on selling bonds. The last big banks will have reported by tommorrow and so their earnings can no longer push the market up and also they're no longer cheap.
So beware of calling this a recovery for when the Tarp funds soon run out and Geithner and Obama ask congress for more money, they'll likely not get it and if AIG and Citi go belly up, you'll have no flights anyway as AIG insure them and ex- pat Americanos all over the world will be banging on Citi's doors demanding there money back. A sight that will strike fear into investors all over the world!
If you want a market recovery, you've a few months to wait yet and an end to the economic downturn, 2010 at the earliest, so patience pal.
Regards,
BB.
Comment by Market Newbie
Gizmo Peek
Stock Market Punk
Cases in point: 1.There is a reason why those bank shares that you mentioned are oversold- people have been buying them. There're probably lost opportunities there for those who didn't know what to do. 2. As you said markets don't go down on a straight line - that sounds like "retracements" to me. There would be another lost opportunity there for some who would otherwise already be a little bit of a sophisticated investor. If they understand the equities game.
Another point is this, since the start of the latest bounce in the local market some of the stocks have already made more than 10% increase in prices(profit for those who bought them for the first time at that point). If I am the one who bought them and I understand the "vagaries" of the market as you called them, I will have a better idea on what to do with those stocks at this point and time.