First, for those who may not remember him, Rukeyser, the host of the Public Broadcasting Services's weekly show, "Wall $treet Week with Louis Rukeyser," was both the chief pulse-taker of Wall Street and the typical investor's representative for decades. Rukeyser's sole interest was helping his viewers make the right investing decisions.
Think and evaluate your holdings
More than likely, Rukeyser would advise against making any investment decision in a day or a week - - even if the Dow drops another 1,000 points in a day or another 2,000 points in a week. Fear (and greed) cloud investment decisions, hence Rukeyser would more than likely recommend that investors take a couple weeks, perhaps longer, to evaluate their investment goals, their risk tolerance, and each company's prospects.
Further, the sense here is that Rukeyser would sell blue chip stocks only reluctantly, if at all. More than likely, he would hold the likes of General Electric (NYSE: GE), IBM (NYSE: IBM), AT&T (NYSE: T), Coke (NYSE: KO), Boeing (NYSE: BA), Procter & Gamble (NYSE: PG), and Exxon-Mobil (NYSE: XOM), among others.
Also, if one had not sold the auto manufacturer stocks already, Rukeyser may have even recommended holding such bleak-outlook companies as General Motors (NYSE: GM) and Ford (NYSE: F), under 'the lottery ticket' thesis. In other words, if you're down 80% or 90% , why not hang on to the thing, in the event company turns itself around?
And would Rukeyser advise selling into strength, or lowering the stock asset allocation in your portfolio, in the event the Dow rallies to 9,000 or 10,000? Here again, Rukeyser would probably ask you not where you think the market is headed, but where you're headed: if retirement is three to five years away, lowering your exposure to stocks makes sense. It makes less sense if you're investing horizon is longer than five years.
In sum, Rukeyser would advise against any rash or panicked decision. The global financial crisis is broad and most likely will not be short, but the markets will recover, with a new regulatory framework in place, including appropriate oversight. Further, the United States is not going out of business.
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Reader Comments (Page 1 of 1)
10-27-2008 @ 3:17PM
Sinbad said...
Paul Cuneo busts ADEF earnings Fund. Down 90% for the year...long on full margin. fund will now be liquidated.
10-27-2008 @ 3:33PM
Jason said...
I agree for the most part. Now is not the time to panic. Try not to do something that you will regret later.
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