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Greg Herman
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Age: 22 Home Residence: Mount Holly, North Carolina Investing Philosophy: Extreme Distress Earnings Plays During Multi-Year Market Bottoms; I could care less about stocks that are 10%, 20%, or even 50% undervalued. I will wait an entire decade for the oppurtunity to buy 10, 20, and even 50... More
  • 04/08/2012 It's Been Awhile Since I Last Wrote, But We're Getting Closer To The Big Opportunity 2 comments
    Apr 8, 2012 9:50 PM

    Patience, man this has been hard to stay out the market for so so long. I love to look at companies and make investments, but can't because of the phony situation we find ourselves in right now. ZIRP and money printing at the FED have not only distorted markets and valuation models, but also perpetuated bad government spending problems as well as perpetuate malninvestments in the economy. Not buying into to government-backed economies will provide spectacular results in the future, but of course we just don't known exactly when that will be. However, that is why PATIENCE is of the upmost importance. As always, remember Rule #1: Never Lose Money...

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  • slash32is4
    , contributor
    Comments (260) | Send Message
     
    can the market stay irrational longer than you can stay in cash? (rhetorical question)
    1 Feb 2013, 11:03 AM Reply Like
  • Greg Herman
    , contributor
    Comments (75) | Send Message
     
    Author’s reply » I am happy to report, yes... It has taken a complete re-wiring of the mindset toward the market, but as long as the fundamentals don't support an type of economic expansion in the economy, I can keep this position going. Funny money, is just that, it has caused many people to chase yield, but what is the endgame. Earnings have stagnated for about a year and a half. Not even considering the stealth bailout that is swapping Mortgage Backed Securities from big banks balance sheets for 100 cents on the dollar from the FED, we cannot push nominal interest rates down like in 2008 to goose the market anymore. I honestly hope the market continues to go parabolic in the coming weeks and months, as that would ensure that the euphoric final push of the current bull cycle within the secular bear is near completion. The bigger the bubble is blown, the larger the resulting pop. I'm ready and eager to put money to work when there is panic selling and fear all around. However, this could realistically take another two years or more to pan out, who knows? But I can't, at my core, ever espouse to go naked long based on what could turn out to be decade or longer ZIRP, QE stealth bailouts, and a degradation of consumers in the U.S. and Europe. I have learned to take the mental "pain" of missed opportunities for what is now a little over two years, but do not care because of the insane risks that loom out over the visible horizon. More likely than not, the view will become much more clear, but may be very dark indeed.
    15 Apr 2013, 02:39 AM Reply Like
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