Know Thyself: Your Response to the Goldman Selloff Speaks to Your Recovery Convictions

When news of the Goldman Sachs ($GS) fraud charges dropped the Dow 125 points out of nowhere Friday morning, you probably reacted in one of two ways…

1.  “OK, the helium balloon act is over, time to get out of all this junk I’ve been riding, maybe even look for some shorts.”


2.  “Finally!  The dip I’ve been waiting for!  Steels and retailers and techs are all pulling back for the first time in months!  I’m all over this stuff.”

Now keep it real…I may not have gotten your exact words or subconscious thoughts right, but here’s your chance to recollect which response was closest for you.  Why is this important?  Because your reaction speaks volumes about whether or not you believe in the recovery.

Were you riding the rally wave just because it was working and everyone else was? Or did you really believe in the recovery and that you were buying cheap stocks?

Take a moment to think about what you did when the news hit and the market dropped – were you gleefully checking your liquidity for a buying opportunity or packing up the circus tents because the fun has been had and now it’s time for reality to set in.

It really is that cut-and-dry.  No one can answer this question for you.

Go think about it.

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here:

Please see disclosures here.

What's been said:

Discussions found on the web