Relief Rally Expected

The fact that the financial markets were the lead story on every medium yesterday, and all of a sudden the “experts” are aware of what has caused the meltdown, we can almost be certain of a relief rally with cries from the “Don’t Worry, Be Happy” crowd to come back in the water is fine now.

A joke that’s been around for awhile is worthy at this time:

A very religious man was once caught in rising floodwaters. He climbed onto the roof of his house and trusted God to rescue him. A neighbour came by in a canoe and said, “The waters will soon be above your house. Hop in and we’ll paddle to safety.”

“No thanks” replied the religious man. “I’ve prayed to God and I’m sure he will save me”

A short time later the police came by in a boat. “The waters will soon be above your house. Hop in and we’ll take you to safety.”

“No thanks” replied the religious man. “I’ve prayed to God and I’m sure he will save me”

A little time later a rescue services helicopter hovered overhead, let down a rope ladder and said. “The waters will soon be above your house. Climb the ladder and we’ll fly you to safety.”

“No thanks” replied the religious man. “I’ve prayed to God and I’m sure he will save me”

All this time the floodwaters continued to rise, until soon they reached above the roof and the religious man drowned. When he arrived at heaven he demanded an audience with God. Ushered into God’s throne room he said, “Lord, why am I here in heaven? I prayed for you to save me, I trusted you to save me from that flood.”

“Yes you did my child” replied the Lord. “And I sent you a canoe, a boat and a helicopter. But you never got in.”

Not knowing how long this relief rally lasts, and 31+ years of real-life experience in markets screaming the worse is still to come; I leave you with another observation of mine when it comes to investors:

There are three types of Investors,

Those who make things happen

Those who watch what happens

Those who wonder what happened

In 31+ years, I only seen the first one do well over time.

My advice?