Judging from your avatar you need a good shave... :P
One of the downsides with bargain basement shopping is... further reductions are possible. Although I got in on USG at Buffett levels, I am currently stocking up further at a discount to 20% I originally got the stock!!! Check USG's insider buying. Huge levels of activity there.
Is USG going to move soon? Nope. Are some of your holdings going to move? Probably not. Should we care? That depends. Price momentum certainly does not necessarily have any correlation with intrinsic value or performance of the company. Unless one realizes one made a huge error in one's initial analysis I would always argue to hold on UNLESS A BETTER OPPORTUNITY IS AVAILABLE.
The hardest part with this strategy is the discipline required. Also, on an intellectual level one needs to be able to muster the confidence in one's appraisal. My take is that a lot of people either are forced to give up then (pressure from stakeholders like in mutual funds etc...), or don't have the stomach for it (usually the independent investors, like us).
---Yes, we are the INDEPENDENT investors. Not the individuals. That makes no sense. Calling yourself an individual investor is like saying: "Me, personally, I think that..." (we get the point that it's your thought. You don't need to emphasize yourself three times)---
If one happens to be a SAVER, then these tempting offers are literally like the January sales. Especially in the banking sector. When one isn't a saver then there is a small dilemma to solve as more and more bargains appear on the horizon. Is there a better offer available than the current holdings? If yes, and I would urge anyone to examine this with the greatest of cares, then you may contemplate the ever dreaded but sometimes necessary re-balancing act. Saving is important because it allows either to top up on existing positions or take new positions like the yummy stuff on offer now and take full advantage of any current bloodbath. Being a saver is key to being a successful investor. It's what allows any independent investor to take full advantage of any calamities.
BAC at current levels is getting interesting. WFC at 52 week lows? Great news!
People will need homes, and they will need mortgages. They will always need them unless we change something more dramatic to the way we organize our society. That change would certainly be at least as drastic as the soviets tried to achieve (and failed).
Just random musings....