Remember buy low, Egypt unrest = buying time

[RB TexLa]

Egypt turmoil rattles Middle East stock markets

By ADAM SCHRECK, AP Business Writer Adam Schreck, Ap Business Writer – 57 mins ago

DUBAI, United Arab Emirates – Investors nervous about the instability gripping Egypt drove stocks down sharply across the Middle East as markets reopened Sunday following a weekend of violent protests.The losses, led by a drop of more than 4 percent in the business hub of Dubai, reflect concerns the unrest that has roiled the Arab world's most populous country and nearby Tunisia could spread, jeopardizing the economic recovery across the region.

"There's this contagion effect, where investors are thinking: Well, is this going to spread out across the Arab world?" said Haissam Arabi, chief executive of Gulfmena Alternative Investments, a fund management firm in Dubai.The benchmark index for the Dubai Financial Market tumbled 4.3 percent to close at 1,543.02.

Among the biggest losers in Dubai were real estate developer Emaar Properties, the builder of the world's tallest tower, which sank 8.3 percent to 3.11 dirhams (85 cents). Shares of discount carrier Air Arabia, which is growing its operations in Egypt, dropped 6.1 percent to 0.79 dirhams (22 cents).Abu Dhabi's main index sank 3.7 percent to close at 2,561.06.

Shares of the exchange's biggest loser, Emirati natural gas producer Dana Gas, plunged 9.9 percent to finish at 0.64 dirhams (17 cents) despite assurances that its Egyptian operations haven't been stopped amid the protests.





http://news.yahoo.com/s/ap/20110130/ap_on_re_mi_ea/ml_mideast_markets

[dmallind]

1. Will buying or not doing so do anything at all to help or hurt

anybody other than willing sellers who are trying to get what they believe is the best deal possible?

I have and I seek no exposure to ME equities markets but I heard the same passive-aggressive whining when I did buy US equities just after 9/11. Not one single share I bought was forced from anyone's hands and it did no more to help or hurt the events themselves than buying a gallon of milk from a shopkeeper. Every single seller thought they were getting out just in time before a major crash and that they were taking advantage of me. They were wrong. I have no clue if buyers or sellers in ME exchanges are wrong, but one of them will be, and both think it's the other I can assure you of that. I can also assure you that regardless of which, the resulting gains or losses have and will do nothing good or ill to the chances of the Egyptian demonstrators to improve, or worsen, their situation as a people (unless of course some of them are taking the time to call in trades while they are rioting)

[cbdo2007]

2. Anyone trying to time the market is just begging to lose money.

You're correct that "buy low, sell high" is an important rule of the stock markets, but "never buy on news" is more important in these cases.

Good luck!

[safeinOhio]

5. very simple

when everyone is selling, buy. when everyone is buying, sell.

impossible to time the top and bottom, so just sell and buy spread out over major sells and buys. If you were selling last week, you could buy it all back next week with a pile of $ in your pocket.

[cbdo2007]

7. It's impossible to time any of this....no one knows what's going to happen with

Egypt tomorrow or next week or a month from now.

If you sold last week, buy this week...great but how about a month from now when it's down 20% more?

The only times I've ever been burned while stock trading is when I've bought based on news events thinking I knew what was going to happen next. Whenever I follow my set of rules to the "T" is when I make significant money.

[Cirque du So-What]

3. Glad this unrest and potential massacre is working out so well for you and your money

:eyes:

Are the terms 'mercenary' or 'death merchant' out of line in this instance?

[FLPanhandle]

4. Doesn't mean it's as low as it's going to go.

Depending on the new government, it could collapse.

[RB TexLa]

6. I wholeheartedly agree with post #5

[FLPanhandle]

8. Maybe during normal fluctuations

However, I won't follow that advice during a big collapse.

For example, would you have been buying internet stocks in 2001 when everyone else was selling?

[RB TexLa]

9. There is always a risk, but I'm not too worried about Dana Gas going away

[cbdo2007]

12. Ha ha, remember the guy here who bought BP after the oil spill??

Same logic he had "there is no way BP is going away" but his problem was the he wasn't able to judge the bottom and he bought in too soon, BP continued to fall and he got scared and ended up selling for an (I think) 8% loss.

Same thing here. Of course Dana Gas will still be around but the chances you're going to hit the bottom and see a recovery quickly and substantially enough to make a bigger profit than you could through normal investing is very, very slim.

[RB TexLa]

13. BP hasn't gone away. And I didn't say there wasn't risk.

Also, I usually buy stocks I'm willing to hold.

Tragedy creates opportunity. Here is an opportunity to buy some Middle East blue chips at a discount.

[Codeine]

10. I don't troll with you. nt

[marmar]

11. I'm sure the Egyptian people give less than a damn.....

The financialized world is a truly sick place.