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Thursday, August 4, 2011

Biggest drop in 2 1/2 years: great buying opportunity!

The Dow dropped 512 today, or 4.31%, The NASDAQ lost more than 5%, down 136, and the S&P 500 fell 60 to 1,200. Only once or twice a year do we get these kinds of opportunities to buy quality stocks at attractive valuations.  It takes a lot of fear and uncertainty to cause the opportunity to materialize, and that's exactly what we are seeing today.  People are freaking, and that's what I love to see!  This is the best buying opportunity we have seen in a long, long time, and I am taking full advantage of it.  I was buying throughout today's trading session and will buy more tomorrow, unless we rebound right off of the open.

The unemployment number will be reported tomorrow, and that's what most people are waiting to see.  I feel that even if it is ugly, stocks may still rally because we are down about 12% from the recent high already.  That is a huge dip in little more than a week, so I feel that many investors will start to buy regardless of the bad news.  We shall see!

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