Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: falconflingagain who wrote (53288)	11/10/2005 9:30:59 AM
From: Think4Yourself	Read Replies (2) \| Respond to of 206317

I am not so convinced that the drawdowns will be as big this winter. The Home Depots here in Michigan have nearly doubled the normal winter inventory of insulation they carry and every time I go in (3-4 times a week) someone is buying some. Owens Corning is running a pretty good rebate program right now and there will be significant tax incentives to upgrade home energy efficiency after 1/1/06.

To: falconflingagain who wrote (53288)	11/10/2005 9:47:29 AM
From: chowder	Read Replies (2) \| Respond to of 206317

>>> My experience in the last year is that, yes, lock in profits, but then again, stay in the market to avoid missing runups...somewhat opposing principles, oui ? <<< Did you know that only about 20% or less of mutual fund managers pull in annualized returns of 20% or more consistently? With all of their knowledge and the power of their research teams and firms, they can not consistently pull in 20% annualized returns. The reason their performance is so dismal over time is because they must stay close to fully invested. Their charters require that they stay invested, in good times or bad. It's the bad times, which come very swiftly, that will destroy performance over time. It's the fear of missing a run up that causes people to stay invested and suffer through the bad times and underperform the markets over time. CHK for example, dropped 31.4% in just 6 weeks time. Anyone who was holding CHK at the recent high and rode it down to the recent low must now obtain a 46% increase in price, just to get back to even. That's a 77% price swing in both directions! KWK dropped 34.3% in the same time frame, from recent high to recent low. Anyone holding at the top and still holding at this week's low, will now need a 52.3% increase just to get back to even. That's an 86% swing in price in both directions. It's impossible to earn 20% annualized gains consistently if we have to earn 50% plus returns just to get back to even. There are some who will still have a profit after sitting through a 30% correction, but that's not the point. The point is we should learn to better utilize how to take advantage of 70% price swings in both directions. That's an awful lot of profit to let slip through one's fingers. dabum