Sure, it could drop again, but not to anywhere near 7.
After today, high 8s looks to be the bottom from here(if we see it at all).
Also, I still think Europe will muddle through, and since I believe a lot of the recession is baked in via low multiples in cash rich companies with few, if any yield earning alternatives, I don't think we'll get a 2008 repeat.
No, I wasn't laughing(except at myself) when it dropped to 7.50, but since I was still up almost 100% and could afford to wait, I wasn't totally panicked either.
It still comes down to estimated risk/reward, and, (as I'm sure you know), we still have to endure one to get the other.
Yes, we need to get a little lucky, but just a little, while the risk of major loss is very small.
Relax?-
Well at least to some degree.
Best(Smug)regards,
bw
