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To: Jeffrey Beckman who wrote (106296)	12/30/2011 4:05:39 PM
From: Rawnoc	1 Recommendation Respond to of 120405

That's a compliment to me and an insult to Mike. :)

To: Jeffrey Beckman who wrote (106296)	1/3/2012 8:19:34 AM
From: Chris Forte	1 Recommendation Respond to of 120405

I don't know about the rest of you but I feel good about 2012. I'm planning on have a great year investing in equities. seekingalpha.com Contrarian Investing Works It’s a truism that no one consistently predicts the stock market. (That’s why money manager and Forbes 400 member Ken Fisher calls it “The Great Humiliator.”) However, there’s a straightforward system that offers a reasonable prospect of timing the market reasonably well in the future. A 25-year study published last year in The Journal of Financial Economics found that if you had simply invested in the S&P 500 when equity fund flows were negative (redemptions exceeded new investments) and into 90-day Treasury bills when fund flows were positive (new investments exceeded redemptions) you would have substantially outperformed the market while spending nearly half the time in riskless T-bills. In other words, contrarian investing works. This system would have you do the very inverse of what the great mass of investors is doing. (It turns out they have god-awful instincts, so it pays to buck the consensus.) Bear in mind, if you’d followed this system, you wouldn’t just have earned higher returns than being fully invested. You would have done it with far less risk, spending nearly half the time in riskless T-bills. I mention this because the Investment Company Institute recently reported that investors are yanking billions out of equity funds virtually every week and pouring the money into ultra-low-paying money market accounts. The Wall Street Journal further reports that “investors have continued to consistently pull money from U.S. equity funds since August.” I’m trying to contain my glee. Who says no one rings a bell in the stock market? The fear and pessimism about both the economy and the stock market are way overdone and fully discounted in current stock prices. If you can’t be stirred by low interest rates, low inflation, low valuations and record profits, you really should ask yourself two important questions: 1. Is logic or emotion governing my decision making about my portfolio? 2. If I don’t invest in stocks – the greatest wealth creator of all time – how am I going to meet my long-term financial goals? We’ll talk more about these issues in the weeks ahead. But, for the record, I think 2012 will be a good year for the stock market and – although virtually no one expects or believes it – perhaps even a barnburner.