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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host

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To: Math Junkie who wrote (42132)1/14/2009 9:10:20 PM
From: Skeeter Bug  Read Replies (1) of 42834
 
Math, i thought i was pretty specific - don't invest in bubble markets and you don't have to ride out bear markets.

if you do invest in bubble markets, know the terrain, use specific risk reducing strategies and be ready to get the heck out.

i've never claimed to be able to predict *when* a bear market would start. heck, if i could do that, i would've been fully invested during the insanity on the way up.

was i wrong on the fundamentals of the company? nope. but the bubble market raised the dead fish to absurd levels.

the one decision to riches mantra is false. ask the japanese (you are familiar with the nikkei, no?) or stick around in these markets a bit longer.

the truth is, someone who dollar cost averaged over the last 10 years has lost his collective *ss due to dcaing into a bubble and now sitting on massive losses - EVEN THOUGH THE S&P IS AT ABOUT THE SAME LEVEL AS IT WAS 10 YEARS AGO.

the mattress out performed someone who dcaed over the last 10 years - and probably by over 30%!

"the only risk is not being in the market" is another fallacy that needs to be taken out back and shot. the market is risky and risk should be respected and properly managed.
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