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

To: Paul Senior who wrote (50870)	2/12/2013 6:40:00 PM
From: E_K_S	Respond to of 78791

Re: New market Highs and strategy for staying w/ value If it makes you "feel" any better, at this level in the market, for every new buy I do, I am selling something. I have sufficient cash reserves and quite a bit in "cash like" equities and bonds that come due in 2-3 years (35% of the portfolio). Therefore, rather than stocking a pile of cash, I am still buying what I consider value buys and/or special situations. I am not letting the simple fact that "the market" is at all times highs stop me from new buys. Also, I am not chasing stocks but letting prices come down to me. So one must be patient. I guess that is what makes a veteran long term investor . . . discipline. FWIW, LNCO is one on my sell list but at slightly higher prices. I am only selling 50% of my position ans those will be my high priced shares w/ a small gain. I think I can find other places to deploy that money which may provide me a better capital gain opportunity. It's hard to hold this one and watch it fall as Oil moves higher now above $95.00/barrel. What is going to happen if/when oil falls back down in the $80.00/barrel range. Will LNCO move higher in price? EKS

To: Paul Senior who wrote (50870)	2/13/2013 11:38:41 PM
From: Jurgis Bekepuris	Read Replies (2) \| Respond to of 78791

Partially OT. Paul, I think that you probably should not adjust your views on PEs. IMHO, the market is starting to look expensive. A lot of stocks have run up, trading at 52 week highs and cheap opportunities are few. Yeah, there are pockets of cheapness still, but mostly for companies where market expects (rightly or wrongly) business dropoff in sales and earnings. In addition even the expectations of dropoff are becoming fewer. E.g. WU says that business is gonna drop this year and market pretty much shrugs off the report. Yeah, it's still somewhat cheap, but not as cheap as couple months back. Personally, I find very few things to buy - which is good for me, since my cash is below 20%. I should sell and I might sell to get cash up. If your cash levels are high, buying now might not be a good time. Of course, I can't predict market. We could be entering a bull, especially if economic news continue to be good. It just feels similar to times when the prices were high, values were few, and market dropped after a while. It's mostly hand waving though, so I'll say that I could be very wrong here and it's probably mostly OT. :)