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Strategies & Market Trends : Value Investing

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Lance Bredvold
To: Paul Senior who wrote (65061)10/4/2020 6:11:09 PM
From: E_K_S1 Recommendation   of 78814
 
I think now w/ AI and BIG Data, much of the detailed analysis is done by computer. The market may be getting more efficient in that way. I have noticed that Private Equity and Hedge Funds tend to 'blow-up' more because those funds used a huge amount of leverage & derivatives that went sour.

The individual may be able to perform better just because of the size of the money they manage.

One of the things I have learned over the last 35 years is it is easier for me to accept the daily losses/gains and use a strategy of scaling into my Buys/Sells. I now will Buy/Add every 2% lower and have those order(s) entered w/ GTC and expect to get those orders filled as the market sells off (sometime over 900 points in one day).

I do not do my Sells this way but will scale out of my gainers if/when I think they are fairly or over valued. Even then I do not completely sell out of the position. I lost too many good gainers (like MSFT, ORCL and others).

The one HUGE thing different now that I have seen from when I began investing in the late 1970's are these historically LOW Interest Rates. We may even see 'Negative' interest rates. This is unheard of and was never taught in any of the finance classes I took in college. It's like dividing by '0'.

The flip side is how is the market going to react when interest rates eventually 'normalize' and will value investing be the strategy that may/could save/maintain the value of your portfolio.

EKS
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