I read somewhere that buying stocks in a liquidity crisis always works out well. Is that true?
Seriously?
Well if you think about it - you always want to purchase from forced sellers or individuals that are distressed because they are not price conscious. A lot of names are getting hammered from rumors of hedge fund blow ups. Anything Atticus owns, Tontine is another… So think over-crowded hedgie names RIMM, Apple, Posco, Potash, Freeport, etc. Not endorsing any of these names since I haven’t done the research but just an example of motivated sellers.
always buy near the bottom of a liquidity crisis. haven’t we had a liquidity crisis since july 2007?.. basically saying buying mini-crisis dips during bear markets is great, until something grows into a much bigger problem.