Jacob,re:"market". I believe your approach to this
market is correct, if I understand correctly, I reckon
your approach awhile back.
The 'buy and hold and forget' is not going to make dough
in this market.
My observation is based on human-nature.
We have an industry, society that requires 'decent
return' to sustain the living standard, like: 4000sq.ft
for a family of 4...Lexus...BMW...SUVs...HUGE_PICKUP...
the 'consumers'.
Salary based is not going to make it to upgrade life even
under the 'NO INFLATION' scenario (well, the problem is
there is no WAGE PRESSURE either).
So, now is a "Jungle out there", that is, let's out-fox
each other. So, downgrade, upgrade, concern this, concern
that, quality of earnings, quality of revenues, now a
better tool (question of accounting, just whisper and
here you go...down), rate-up, rate-down, corporate
profit return and maybe not yet..., so on ... and so on.
To catch up with this is impossible for most "investors"
who happen to have life other than watching 'CNNBC'...
I don't think ENRON is an isolated case in terms of
'corporate culture'. Anderson is not the only accounting
firm who understand the loopholes. They get paid to
'crack the code', so to speak.
$600,000/year salary for a special secretary is probably
not an isolated case either, so the public knows where
their long term 401k money go.
Of course this is life and all the lowly losers have no
right to gripe since they did not have the 'right stuff'
to 'make it big'.
Now the 'money flow' seems to be going to the 'RealEstate',
(I wouldn't be surprise most of the money came from the
'stock market' and now used in another 'growing market',
the 'RE').
Same scenario, the 'lowly losers' now have no alternative
but to 'follow' the leaders and make contribution to
support another market (they say, buy now before the
starter-home start from 300k+) I like to trust AG that
there is 'NO INFLATION'.
until ... and guess what, hmm ... somehow:
corporate profit 'return', valuation looking better each
and everyday ... here we go again ... this time will
take a little bit longer though unless:
AG continues to print money.
The money unwind from RealEstate(very slow).
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