Prudent, not astute, but close enough.
Okay close enough, although in that post my tongue was planted firmly in my cheek.
What do you call the so called, Long Term Investors, who have been, ruined is a strong word, but it would apply to many.
What "Long Term Investors?" There are probably nine of them left in the world. Even Warren Buffett, the world's most renowned value investor, has much of his money in cash now, waiting for the once-in-a-lifetime bargains to start popping up, because he knows better than to enter long-term positions just at the entry gate to a deep recession. If you're referring to the people who went out and bought index-tracking mutual funds at the peak of the mania, I would maintain that they too are speculators, although of a different breed than the day-trader gambler variety, and yes, many of them have been, and many more will be, ruined by the decline.
My own money is in 50% government security funds, 15% gold and silver, and 35% Prudent Bear fund (BEARX). BEARX is up 50% since I bought it, and the funds are steadily grinding upward. Gold and silver will have their day, but not until the stock market starts to feel some real prolonged pain that becomes a dull ache.
How can buying when a analyst is recommending a stock in realtime on national TV be called guessing.
You're not serious are you? You're baiting me. Is this really your investment strategy? Buy the Talking Heads? Sometimes, yes, a stock touted by one of these bozoes will spike upward briefly after one of those inane cheerleader sessions, but you have to realize that the only people buying and selling those spikes are other day traders just like yourself, each thinking he has some magical timing technique that the others don't. Each tries to guess exactly when he should sell his stock to other guessers who might be playing the spike late, but before all of the guessers start selling to collect their "easy money." And at the end of the day when the spike has collapsed, the net result is that a bunch of day-traders have bought and sold one another's shares, and the "analyst" who made the tout collects the commissions.
<But when the market sours> Now that's just plumb silly. The ones who have taken it in the mouth this downturn have been the long term players.
First of all, I give you full credit for using the phrase "plumb silly." I like that one. But beyond that, while I don't have a link for you, I've read plenty of statistics that indicate that the day-traders and momo players have been taking it on the chin in this downturn. If you've been lucky enough to hold onto your money while the other gamblers are dropping like flies, by all means, double down and stay at the table. But you should realize that as the downturn progresses, the only gamblers left at the table will be the other survivors who are just as confident as you are that they can outguess your timing. During a bull market, the guessers, on net, come out ahead, but during a bear market, they lose money to the market's whimsical disdain.
Good luck!
Dave |
