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

To: golfer72 who wrote (54715)	1/5/2015 2:16:27 AM
From: paulelgin	Read Replies (1) \| Respond to of 78632

If you get caught-up in trying to beat (or perform the same as) an index year after year, then you are going to make some poor investment decisions in overvalued markets, just for the sake of keeping up with the joneses. And when "the market" gets cut in half, so too will your portfolio. "Great! I lost half my money, but at least I performed on par with my benchmark!" Pay attention to downside risk. It will keep you alive in this game. If a lofty market advances by 15 percent, then falls 50 percent, you're a hell of a lot better off cash-heavy (and "underperforming" in the short run) during that 15 percent advance, so you can scoop up the bargains afterwards... None of us knows when a crash will occur, but there are certainly any number of signs flashing red right now (and for the last two years or so).