Live Chat: Opportunity Amid a Wild Market

This week has been one for the record books. Monday was the sixth largest point drop in Dow Jones history. Tuesday was the 10th largest point gain in its history. In percentage terms, both rank in the top 100 craziest days the market has ever seen.

These wild days hammer home two points. First, you can't time the market. Those who sought safety by selling during Monday's free fall missed one of the largest rebounds ever on Tuesday.

Second, huge daily movements often make little sense. American businesses did not lose 5% of their fundamental worth on Monday, only to become 4% more valuable on Tuesday. What changed is the price.

And as Warren Buffett says, "Price is what you pay. Value is what you get." Roller-coaster markets might be gut-wrenching, but they can be a gift for those looking for bargains. We have no idea how much further markets might fall. But we are convinced that the plunge over the past two weeks has created opportunities for long-term investors.  

From now until 5 p.m. EST, Motley Fool columnists, analysts, and advisors will be hosting a live chat. Please join us below. Ask a question, answer someone else's, pitch an idea, or just see how the Foolish community feels about their investments. We're expecting a large volume of comments and can't answer them all, so don't be discouraged if yours isn't addressed. See you there!

The Motley Fool has a disclosure policy.


Read/Post Comments (8) | Recommend This Article (24)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On August 10, 2011, at 10:12 AM, kalyans wrote:

    Are we heading to a double dip?

  • Report this Comment On August 10, 2011, at 11:19 AM, leahgenius wrote:

    The biggest opportunity this week is the chance to determine what kind of investor you are. If this week has really scared you, you need less exposure to the market.

  • Report this Comment On August 10, 2011, at 2:13 PM, TonioGtz wrote:

    Thanks for doing this, it really helps!

  • Report this Comment On August 10, 2011, at 3:38 PM, itskash wrote:

    any good financials?

    BBT, PNC?

  • Report this Comment On August 10, 2011, at 3:41 PM, ayaghsizian wrote:

    Sell PUTs on great companies like Apple at 360, Msft at 24 and McDonalds at 82.5. Great source of income and if you do get PUT to them that's even better. Hold for awhile or sell calls at 365, 25 and 85 respectively.

    Aapl only 14 PE. That's like having a 20% off coupon when you press the buy button.

  • Report this Comment On August 10, 2011, at 4:14 PM, tangstarr wrote:

    More live chats! :-D

  • Report this Comment On August 10, 2011, at 5:25 PM, wolfhounds wrote:

    @ayaqhsian

    was thinking about selling AAPL puts 2 days ago but bought @358 instead. I sold 300 puts when it was 315 and never got down there, although I kept the premium.

    Taking advantage of what the market will give you on the best stocks always works.

  • Report this Comment On August 11, 2011, at 4:28 PM, Mstinterestinman wrote:

    My three picks worth looking into Box,Ebix and MCF Good Companies, Good management and a great valuation. ESI is also dirt cheap right now.

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