Stock market.....lookback & looking forward !!!!!

Last 6 months has to be the "most brutal & sustained downtrend in the last 40 years...which I have invested & observed"

Congratulations if you have "survived"with some equity in your account........

Do NOT feel bad if you got "wiped out in this brutal & relentless selling".........

Trust me........ I have been through this scenario in past...and had to "regroup & start all over again"

Wall street goes through these SLUMPING scenario "every 5 to 8 years" as GREED takes over"

There is NO way to hide from deep losses as every stock gets a minimum 40% to 50% haircut...which simply means who were on 50% margin gets wiped out completely.......

Those who are NOT on margin are looking @ horror @ their statement of 401K ,IRA,Roth with a 50% haircut........this is not easy for anyone to digest......instead of being ahead 50% to 100% ..NOW it is losing all GAIN plus a stunning loss of 50%...........

Some frustrated investor/trader sold everything near bottom & went all cash or money market funds......to preserve what they had........based on their priorities !!!!!

So...if you are trying to learn something from this financial Tsunami......it IS only one thing.....that preserving of capital has to be #1 goal........

Capital IS preserved always by taking profit which locks any gain........

Capital is also preserved by getting OUT of stocks which MAY have more RISK than others.....

Nothing wrong in making mistakes...but learning from it IS more important.......

The only reason that I survived in this freefall.......that my oversize position was reduced and did NOT put all funds to work EVER.......

I maintained 50% equity away from stock market completely........

This IS done whether it is good time or bad time in markets...........

I have "learned" that it is NOT how much money you put in market matters ...BUT...WHERE you invest IS more important........thus a focus on FA/TA & tape.....which keeps changing on a daily basis.......

I have made money always based on my own research & conviction..... not through CNBC or MB..which is full of distortions ,lies based on their own agenda.......

CNBC has done more damage to investors/traders by putting shows like Mad Money or Fast Money who represents option traders & hedge funds...whose agenda changes every hour...if they change their names to "Hedge Fund Money" & "Option Money" then audience WILL know what they are all about in their format & agenda......

So.....after everything IS said & done focus has to be on your OWN homework......

I do provide lot of ideas & names to scan through...but you MUST do your own analysis & be comfortable with your own decision......it is OK to piggyback on some of my ideas .....but.....I like to trade out based on my decision...so you have to be careful in just emulating my portfolio....which IS subject to change on my decision of "relative value elsewhere"

Markets are FINE now...but taking profit & being careful with your own money has to be the "mantra"......

I am looking forward to next 8 months with great "optimism".....

Here is my $ allocation in my current portfolio :

BRCM 9.1%.....Diversified Semiconductor

RIMM 54.6%...Leading Tech & gadgetry play

SEED 9.6%....Seed manufacturer of Corn,Rice,Cotton & Canola..an Ag play

SOLF 10.4%....Solar Play

TOL 16.2%...Best of breed in Luxury housing

All of the above stocks DO have earnings & accelerating sales in 2009...

My $ allocation represents a diversified approach in many sectors & heavy emphasis in certain stock.......

All represents my FA/TA & tape analysis .......

Good luck on your own homework & maintaining your OWN comfort level !!!!!

BLOG does NOT give buy or sell.

Saleem