Market Wisdom?

by: Bob McTeer

The only really sensible investment advice I know of came from Will Rogers, who is alleged to have said:

You buy your stock.
When it goes up, sell it.
If it don't go up, don't buy it.

Advice I just don't get includes the following:

  • People are very optimistic; so stocks will decline.
  • People are pessimistic; it's a good buying opportunity.
  • Stocks go down in September and October.
  • You can't beat the market; it's all priced in.
  • You've got to do your homework.
  • Go with the momentum.
  • The Dow is 5½ points below Fair Value.
  • Sell in May and go away.
  • Cash is king; stay liquid.
  • If you're out of the market a few days, you can miss the run-up.
  • The trend is your friend.

It's a random walk.