Thursday, October 23, 2008

Headline Risk

Headline Risk is typically defined in investment circles as "The possibility a negative news story will be picked up by media outlets and cause a significant change in the value of an investment."

That's the headline risk I'm used to. There's another kind of Headline Risk - the risk that you will jump out of a window if you read the current headlines.

US foreclosure filings up 71 percent in 3Q

Goldman Sachs May Slash 3,200 Jobs as Credit Turmoil Worsens

U.S. Banks Still Aren't Lending
Despite the federal government's best efforts, banks are hoarding cash. It may be 2010 before the credit climate improves


Stay in the game. Down is bad. Cash is good.

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