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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (43838)8/10/2011 1:37:05 PM
From: Difco  Read Replies (2) of 78478
 
Good response - your 3 choices def make me think more about this,

I just want to clarify the final point between opportunity loss vs capital loss. In March 2009 when fully invested, the choice I would have had is either a) sell something I had bought few months earlier at a loss to buy something I like better now or b) forgo the stock that I really liked given the new opportunity. Maybe that's an easier choice when you have obvious losers.

I agree with you that you can't time the market and that's the last thing I'm trying to do, but opportunity cost is not timing it but seeing something that is even more misvalued (either on the up or down) - otherwise the moment you become fully invested you've already called the bottom, hence you are playing the lottery that you've already had your best shot.
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