Apparently, there are only 2 market strategies: Momo, and value. In which case, what's one to do?
newsweek.com
"Wave The Bubble Goodbye"
"The party's over for the highest fliers. Here's how to find life after market death. Think value investing."
By Jane Bryant Quinn
Newsweek, April 24, 2000
"Over the past 10 years, investors have fallen into the mass delusion that stocks are safe. That is, safe when held for the long term, with "long term" redefined. Just staying in stocks (while trading) seems long term to some. Others expect their options or blue chips to hand them retirement on a platter. No matter that the Nasdaq bubble finally burst (last Friday, it spattered everything in sight). The battle cry for the week is: Remember 1987! Surely, our faith can raise this market from the dead.
Well, I dunno. Not all stocks are Lazarus, and not all lottery tickets win. Among the older generation of powerhouse stocks, some of them paid (General Electric, Intel) while others died (Zenith, Pan Am). "Hold for the long term," as an answer to every investment question, is a mass delusion, too.
Many changes could strike the markets in the months and years ahead. For example, maybe double-digit growth has gone away. If so, you'll have to save more money than you thought for college or retirement. I'll bet you $10 and a dinner that today's most-admired stocks won't do as well in the future as the market overall. It's time to look into stocks that haven't been run up.
Momentum investing?buying into rising stock?will still be the mouse-clickers' favorite game. But it's likely to be harder to bid prices up. Newbie investors are getting burned in this Net- and tech-stock crash, and won't be so willing to charge ahead. In the market, everything comes back?so you might bone up on value investing (buying stocks that have been beaten down)."
- Fred
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