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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (43716)8/4/2011 11:22:14 PM
From: Difco2 Recommendations  Read Replies (1) of 78652
 
To all:

Based on online.wsj.com, today was the most active day of 2011 - volume was up to 7.5 billion shares. If you look at the historic table on the left, August was never on the list of most actives. I ask myself whether this is a correction or freefall? After days like these I go back to the "Intelligent Investor" and the chapter "The Investor and Market Fluctuations". The following quote I found interesting:"Never buy a stock immediately after a substantial rise or sell one immediately after a substantial drop."

IMO the market in the last few days went against this trend. Historically, the probability has been on the side of the market going up before the weekend and especially after sell offs, but none of us know whether this will be the case tomorrow.

This brings me to the other quote from that same chapter: "Basically, price fluctuations have only one significant meaning for the true investor. They provide him with an opportunity to buy wisely when prices fall sharply and to sell wisely when they advance a great deal."

Good luck tomorrow. Chutzpah!
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