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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: shades who wrote (68215)	8/28/2005 3:25:46 PM
From: Moominoid	Read Replies (1) \| Respond to of 74559

What I am saying is it seems it costs them more to produce a house than its worth, but rising house prices while they are constructing give them the profit margin. Hard to see how that can be though given that owner occupied housing in CA is so overpriced. I don't know, maybe something I am not seeing here. Well Bogle is probably wrong then saying to hold the entire market then huh - if so much of it is comprised of just a few sectors - you gonna get burned eh? It IS very hard to pick a company that will do well relative to others. Most of these fund managers who work hard to do that don't succeed. On the other hand it probably isn't as hard to see bad companies, or to decide the market is over or undervalued in general or to pick sectors to some degree, or turning points in the market. It will all get harder I think the more hedge funds are out there. But an increasing portion of the market is buying the Bogle doctrine and most other mutual funds just need to be long their label. And so all that money is just sitting there. So it doesn't matter there are some sophisticated players out there. Most are not... This is what you have to see.