"This year has been the nastiest market I have ever encountered in my investing career of 5 years. I would like
to know what people have learned"
Mine are very different:
1.anything can go wrong.
2.diversify by buying totally crappy multinationals that make you want to vomit. PG, G, Ko, Dupont. Any fool can see they are overpriced dogs selling at nearly infinite peg's(sure I am exaggerating a little), but Wall Street doesn't know cdma from wll from ip, and they frequently despise growth stocks. When they hate growth stocks, the dogs will provide stability.
3.DO NOT FIGHT THE FED. The nasdaq looks like a chart of the money supply.
4. I have bailed near several tops in the last 15 years. What went wrong this time? The bull kept charging for 3 months after I thought it would stop, throwing me way off. Be more patient next time when prices are sky high...they will fall.
5. For every dollar a started 1998 with, I ended 1999 with 55. It would have been ok to take 15 out and set it aside. I set aside about 5.
6. Next time you make a list of dogs to buy at year end, buy and hold them. wcom, wcom, wcom, t, JWN, hd, etc. |
