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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: TimbaBear who wrote (15136)	8/11/2002 3:28:29 PM
From: j g cordes	Read Replies (1) \| Respond to of 78565

TimbaBear.. re " denigrating the importance of fundamental analysis." Never said that, you must be reacting to something you ate. As for what I believe about the market, it would be useless to begin to explain it, but I'll start with the following: For one, the market is not an arena designed to harbor and nurture public investments. That's a marketing line, a promotion to sell the public they can turn money over to others and it will be returned to them with some appreciation. The market is a place designed to attract and extract capital... that's it Companies issue shares with little in the way of promise or obligation to increase their value to anyone who purchases them. There are no guarantees. The structure and compexities of the modern market including derivatives, futures and other relationships has evolved to where the "market" is as much a garden for growing companies as it is a self canabalizing entitiy. In order for the market to thrive, for it to be a sustainable money vacuum to seed and sustain economic growth, government, and political ambitions.. it is given the semblance of order and regulation. However, billions upon billions leaks constantly out of the system and it feeds an enormous populaion of financial leaches. But its the system we have.. it could be worse, it could also be much better. So what of the individual investor who has saved some cash and finds the returns in the debt market unattractive? The price one enters a trade, less the price one exits is all there is. There is either a profit of loss, the rest is wait and see, or strategies to offset taxes or some other accounting mishmash. There are a hundred different ways to attempt to minimize risk. Just as there are a hundred different ways to maximize reward. Generally its accepted that with increased potential for gain, there's an increase in risk.. Short term players using derivatives must cut loses instantly because leverage cuts both ways. They must use technical analysis because fundamentals don't work their way to price changes quickly enough. However, the lessons and truths learned in technical analysis also have value for judging long term swings and trends. Value investors work to discover stocks whose price valuations are underperforming business fundamentals and future opportunity. Because millions of people are constantly probing and proding the expectations of public companies and because public companies are constantly promoting their attractiveness to potential investors.. value investing is a challenge. Over time it has its own schools of thought and parameters. I prefer to do some of each.. exploit short term when possible and cache profits into longer term havens. Now I've got to take a tree limb down that overhangs the back porch. Jim