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Strategies & Market Trends : Graham and Doddsville -- Value Investing In The New Era

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To: Wren who wrote (982)11/12/1998 5:02:00 PM
From: Berney  Read Replies (1) of 1722
 
Wren, I'll take the other side of the argument.

I do so cautiously and with a complete understanding that I'm still learning. But, I differ with the concept that market timing is not a reasonable strategy for a value investor.

As you indicate the key is to take the emotions out of the investment decision, and, more importantly, to have a disciplined approach. However, there are many commercially available indicators to help the investor with these decisions. Frankly, I now use three.

Let's take a look at CAT. CAT gets one of the highest scores in my FA scoring system but has been a total dud as an investment. Yet, in the past two months, while CAT has been relatively flat, the astute investor (not me) made a return of about 50%. Not bad for 2 months in a value stock. Take a look at the following chart and see for yourself:

iqc.com

I assure you that it is not an isolated example.

Berney
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