Market drops 2,8 %

Originaly posted 27 february 2007

It has been a long while since we had a decline in the market. Today there was a decline worth mentioning.
Euronext went down 2,78 %
Bel20 the Belgian index dropped 2,91%
AEX main index of the Netherlandshad a decline of 2,12%
CAC40 the pride of France is now 3,02% lower.
Dax the German primary stocks note 2,96% less

3% In one day, will people start panacking? Every value investor is hoping this is the case. People panicking means bargains coming up. But for the real bargains we need a further decline. Is it time to send some doom messages in the world?

Every thing I read even until today was telling us that the markets aren't overvalued. I also believe that they aren't at there top yet. But usually that top means too high, from time to time to an insane high. Noone ever knows when the top is reached and the sentiment turns to pessimism.

Am I hoping the market falls? Not at all, I have my real money in the magic formula picks. I lost over 1.500 € today. I can't say losing money makes me happy. But I believe in the Magic Formula. What I am hoping for is that this little setback in the market takes out blind optimism. And that by putting the people that are getting to enthusiastic back on the ground with both feet, the markets can grow at a normal rate.