Transcripts

"Commentary"-Patience Vs. Timing When Tracking The Markets

JEFF YASTINE: Tonight's commentator says trying to time the market is a fool's game. He's Myron Kandel, founding financial editor at CNN.

MYRON KANDEL, FOUNDING FINANCIAL EDITOR, CNN: A year ago last spring, I said here I was worried that a stock market bubble was developing. The Dow Industrials were at 12,300 and heading above 14,000. But housing prices were softening, economic reports were spotty, Internet-related companies were rushing to go public and forecasters were saying it's up, up and away. I smelled a bubble. So I was right, but six months early. And I certainly wasn't prescient enough to predict that credit would crunch, oil prices would skyrocket, banks would take huge , high-flying hedge funds would come down to earth with a thud, and the Dow would tumble so low. I said then, I didn't know when a bubble would peak, and I say now, I don't know when the market will hit bottom. My guess though, just a guess, is that it will go lower from here. But despite this gloomy outlook, I have a warning for long-term investors who may be thinking about dumping quality stocks now. Don't sell stocks in a panic, hoping to buy them back at lower prices later on. Trying to time the market is a foolish game, especially so if you already missed most of the drop. I think the best strategy right now in both buying and selling is just plain patience. I'm Myron Kandel.