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Strategies & Market Trends : Investing during a Bear Market

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To: Tommaso who wrote (79)11/10/1997 10:49:00 AM
From: raymond marcotte  Read Replies (1) of 226
 
i was not and never would recommend numb adherence to 'buy and hold'.
"But with dividend yields low or non-existent on many current stocks, the best thing right now is to be in cash or short."

i can agree with "cash" but never with "short." with cash i am earning something, even if i guess wrong about the market. margins on the short side are an expense and a there is infinite risk if the market goes up!

i converted more and more to cash this summer and fall. the asian shock was just the kind of opportunity preparations were made for. i only returned 25% to the long side. and am considering going a bit more as soon as some of this volatility dampens.

never short though! i too lived through the 60's and the 70's. very tough to make money then, but with good fundamental analysis and value investing with patience one could beat inflation and still have liquidity. my profits came from playing the cycles. nowadays it has been possible, essential, to take a longer outlook. it ain't over until the fat lady sings.
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