O/T Aren't you combining two concepts? Dollar cost averaging is a much different process from averaging down. Do you object to both?
Thanks for bringing that up, that was indeed a combination of two separate concepts, when I actually meant only one...averaging down. I definitely don't disagree with D.C.A....in fact I always try to buy, and sell, larger positions in thirds at least...
and you make a good point re: wall st. wanting churn. I agree. yet there seems to be very little coming out of wall street re: protection of profits, cutting losses, selling losers and letting winners run. Here's an interesting excerpt from a commentary I read a few days ago...
"Market volatility brings alot of opportunity for those who are willing to take a little bit of extra effort and insure oneself against the catastrophic events that unfolded over the last 14 months. Volatility can be used to your benefit in many ways.....whether its selling calls against current positions in your portfolio, buying a basket of puts as insurance for your portfolio or simply being an active trader......times have changed and the buy and hold mentality has severe limitations......if you don't think so, look at the portfolio turnover rate of most mutual funds (those that are not strictly and index or bond fund)...you will find that most of these portfolio managers that are charging you up to 2% for management fees (fees that are charged to crunch the fundamentals of a business and time needed to REALLY understand the underling business of the companies) are turning your mutual fund assets over anywhere for 2 to 5 (or more) times per year.....in other words many of them are nothing more than stock traders working behind a mutual fund umbrella"
u.f., based on the recent post I shared here on Market Earnings for the next few quarters ahead, and the seemingly unsustainable monetary expansion occurring with all it entails, I can't help but believe there will be some serious pressure in the market in the next 6-12 months at least. Based on these factors I feel some better opportunities will present themselves to those patient and prepared investors who see opportunity in select tech sectors...like storage.
Thanks for the heads up. Best Wishes.
John |
