Monday, May 10, 2010

WOW again: What a rebound!

Check all the European stock indices now. All have rebounded; some as much as 8 percent. Like I have said in my earlier posting last week, the market is always irrational. I am not surprised that this strong rebound will come. When market is down so badly, it is natural for it to rebound sooner or later. There is no rocket science to this. Anyway, a lot of shortists will try to cover their positions now. So, this strong rebound is inevitable.

What is important is what will happen after this. My advice stays the same - stay rational and invest prudently. Nobody can tell you what will happen tomorrow. Invest the money you can afford and the companies you can trust.

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