Adam Khoo's Thought
Received this in my email today and I thought of sharing it you. Profit from the Panic! October 10, 2008 | By Adam Khoo | Dear Investors What you are seeing now in the market is a PANIC!!!! People who have seen their stock value drop by 50% or more cannot take it and are just selling at whatever price they can. Hedge funds, institutions and people who have borrowed heavily to buy stocks in the last few months, are not able to meet margin calls and are forced to sell. As individuals run to the banks and withdraw whatever money they have left, mutual funds are forced to sell their stock and raise cash to meet this withdrawls. So everyone is SELLING SELLING SELLING at whatever price they can get. On the other hand, many people with cash are sitting on the sidelines not daring to buy anything for fear that it can go lower.So what happens when you have got millions of sellers and no buyers? Stock prices plunge like a stone! The Dow (8579 pts) is down almost 40% from its highs and the...