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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (58499)11/19/2016 5:06:55 PM
From: MCsweet  Read Replies (2) of 78918
 
It is easy to say this now after say 7 years of basically straight up markets, but for many years I have not had faith in "experts" like Watsa who basically do global-macro trading/hedging. It is extremely difficult to forecast the markets, and I continue to see geniuses who called one market crash or rally ending up crashing and burning. And I don't think I have ever seen someone consistently predict global markets correctly.

For that reason, I believe one should generally avoid long/short strategies as they tend to more than double the expenses of trading (with short borrowing costs) and also double the possibility of mistakes. Research says the best predictor for mutual fund performance (even better than Morningstar ratings) is low fees.

MC
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