Online Stock Trading

Originally, I was going to title this something-about-the-benefits-of-holding-cash but damn, this really is, just amazing. After posting better than expected results (better even than my most optimistic version) and after earning the first serious gain in a long while, Headwaters got annihilated today, with much of the market, and broke down to an even lower 52-week low after shedding almost a full tenth of its value.

I’m going to save all of the specifics and my interpretation of those specifics about their results for a separate post, but wanted to point out now the fact that we now have a seriously undervalued company (even more undervalued if all the long-term prospects are taken fully into account—long term prospects greatly illuminated by these recent results) getting its very legs hacked off at the knees. Good lord.

That’ll teach me to try to pick bottoms . But back now to what this article is really about—the importance of holding cash. I’ve been hoarding cash for a while now expecting the very possible significant downturn in the market that we may in the very midst of now. I don’t know if we’re heading into a decidedly bear market or not, but things certainly don’t look so good. If you don’t have a significant cash pile, I would suggest starting to build one: you might end up needing it.

If we all do need that cash pile, it’s not going to be for paying bills or softening private interests impacted by the economy, in other words I don’t anticipate a recession (just the possibility of a market downturn), what I anticipate is a wonderful shopping bonanza.