Wednesday, November 26, 2008

Gold amid the muck

I was watching the Citigroup share price tumble last week. It eventually reached US$3.77 a share - a tenth of its value earlier this year - before the US government announced it would bail thr group out. It occurred to me that there was no way this ank would be allowed to fail and it might be a really good idea to buy as many shares as one could...knowing there would be a big bounce when the bailout came.

I didn't do it.....the other half would have KILLED me for a punt of the sort I had in mind.

But today those shares were at US$6.85.

Had I bought them last week when it came to mind, I'd have almost doubled my money in a few days. That would have been very cool. More than cool.

I suspect there are people in the markets making a killing on the volatility we're seeing right now.
Posted by Steve Withers at 10:44 PM
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2 comments:

  1. AnonymousNovember 26, 2008 11:23 PM

    The bailout's are leading to easier ways for you and I to get out of debt. The debt situation is getting better. With the recent bailout, it has opened more doors for the consumer. Most people don't take the time to check all options before claiming bankruptcy.

    Debted.blogspot.com

    ReplyDelete
  2. GarethNovember 27, 2008 12:37 AM

    I know someone who bought US$100,000 worth under $4. I had the same thought, but not the same balls... ;-)

    ReplyDelete

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