Market Currents
Want to beat the market? Easy; for starters, don't count the market's total returns. Many...
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Saturday, June 4, 2011, 8:18 AM ETWant to beat the market? Easy; for starters, don't count the market's total returns. Many advisers and newsletter writers - bound only by ethics, rather than SEC rules - like to leave out market dividends in comparing performance, and it's no small gap: Over the past decade, S&P 500 is up 0.72% annually without dividends and 2.81% with them.
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2 - 45% bear markets every decade....
I dunno about that. I know of a few "advisors" that have beaten the market in a negative sense for years...
Temporary. Take a minute to look through the data and see what is really going on.
The corporate bond market is still flashing green.
Listen to the CEO of Union Pacific and other larger industrials.
Keep your heads. And don't listen to the doom clowns. You wll spend less on Depends.
E
However, to suggest that people are "cowards" for choosing to sell is utterly ridiculous. The individual investor should always focus on wealth preservation, and anyone who has had a good run should know not to get too greedy.
I cannot make an argument to be long this market at these levels, and would argue that there are a number of signal flashing red right now. I don't think we're about to reach the total collapse point, but I think we are in for a nasty correction before they make another attempt to stimulate out of it.
at the risk of boring you and others.
in 2008 McDonalds Coporration among others could not get overnight money. McDonalds could not get overnight money. what does that tell you?
in October 2008 I could not bankers to return phone calls - and when they did they could not meet - guys I have done business with for years were scared to death.
now flash forward
yesterday morning - while the jobs report came out I had breakfast a major New York based group that finances mid market companies. - they want to help me refi my loan that I cobbled together in the summer 2009 at usury rates.
I believe debt markets are smarter than equity markets and I take my cues from that. do you think I was buying or selling when my banker buddies weren't returning calls in October 2008?
you can sell now if you like - you might think that's the smart thing to do if the market drops another 5% in June and July and congratulate yourself but guess what...in a year it will be higher and can you be sure to get back in to catch that wave? I will stay in and accumulate and get paid to wait until my buddies stop returning calls or probably at least until they stop picking up the tab for breakfast. Don't worry - you'll be the second to know.
E
This is the easiest year to trade in my lifetime. Go short and read every Fed governor speech waiting until they start talking about QE3. Then go long.
I went to 40% cash(highest% this year) on Tuesday rally and I'm ready to buy if the S&P drops to 1,250 level, and of course,the last two days I closed my puts as my profits went up so much in such short span of time....
selloff...