Our blog friend, Selden, dead but wise as ever instructs:
The great cause of loss in times of panic is the failure of the investor to keep enough of his capital in liquid form. (p. 71)
What is particularly unfortunate--and you may label me a conspiratorista (I still remember a commenter calling me a recessionista)--is that much of this demise comes from the wealth of average investors. I absolutely believe that there is no more destructive advice than to buy and hold. This is a zero sum game. Someone sold and locked in profits--it is not the Average American's portfolio that participated in that preservation of capita, preservation of profits. It's the most insidious type of wealth transfer that there is. And it is something that NO one talks about.
About face in the futures with the rate cut. Another interesting day ahead.