Newton would proclaim: "For every action, there's an equal and opposite reaction..."
As markets plummet (see my immediate blog below) some people out there, will be making money. It will be those types with the rare commodity of "Confidence and Commonsense" - the 'C' in my S.P.A.C.E analogy I talk about when I deliver presentations to young entrepreneurs, and Seasoned Businessmen alike.
These individuals I describe as owls. Wise birds, with big eyes, that watch and observe (able to rotate their heads through nearly 360 degrees) and take action when they know they are almost certainly assured of making a killing (if they are a bird of prey) or success of managing their investors' funds.
With the FTSE plummeting 10% in the first 10 minutes of trading, "Blind Panic" is being used by the BBC to describe their reaction.
But, market sentiment can, and often does, turn on a sixpence.
Do GM stocks deserve to be at the value they were 58 years ago? Could the Government instruct banks to not foreclose on mortgage payers in default, by taking stakes in mortgage owners and effectively becoming shareholders.
People need somewhere to live, a place to work, they need to earn cash, to spend in the economy.
Could the reaction to "the possible irrational panic of market sellers" be a few smart individuals who "call the bottom of the market" and realise, that when Big Pharma shares are going down (they make drugs, keep us alive, are more than necessary) that the Bottom is near.
A close relative of mine thinks the Dow is going to bottom at 5,000 (down from 14,700 a year ago). Things cannot fall for ever. For every action, there will be an equal and opposite reaction.
So, will our Government project "Confidence and Commonsense" into the market. And will, the market listen. I think the bottom is close, let's confidently predict that, slow down this dive into the abyss and hang on tight.
I'm glad I sell shaving products in the mass market, through a group of retailers like Tesco and Sainsbury, who will still be around, as people somehow need to get their hands on bread and baked beans, even if their Finest or Gourmet ranges gather dust on the shelf.
