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Stocks have been moving up and down largely at the mercy of forces beyond a company's control....

Stocks have been moving up and down largely at the mercy of forces beyond a company's control. That's wreaking havoc for traditional stock pickers who have discovered that long-held investment strategies no longer work very well. "Stock picking is a dead art form," Jim Bianco says. "Macro themes dominate the market now more than ever."
Comments (6)
  • Actually, it's the exact opposite: it's a stock picker's market!! Because macro forces and the bear market are in effect, only select stocks have outperformed. That's why our Premium Newsletter has done so well: we are stock pickers.
    24 Sep 2010, 02:25 PM Reply Like
  • Couldn't agree more. As the markets move away from fundamentals of individual companies and start to move in tandem this becomes a stock pickers wet dream. There will be more mispriced securities that can be scooped up by value investors such as myself and at some point those securities will reflect the true value of the business.
    24 Sep 2010, 02:33 PM Reply Like
  • HFT and the Fed are the market. period.
    24 Sep 2010, 02:29 PM Reply Like
  • No... stock picking is not a dead art form. It's just not much of a buy and hold strategy anymore. It's now a trader's market until a secular bull market is confirmed.
    24 Sep 2010, 02:32 PM Reply Like
  • The funny thing about finance: when something is proclaimed "dead", it's almost certain to outperform. When something is proclaimed "can't fail" strategy, you are looking at a sure money-loser.

     

    As poker players say: "strong" means "weak", "weak" means "strong".

     

    Here's a few recent examples: buying "dead" finance companies in March 2009, buying "dead" treasuries in April 2010.

     

    Can't fail: buying gold and treasuries today or housing stocks in 2006.
    24 Sep 2010, 02:36 PM Reply Like
  • Actually I believe that this is just setting the stage for those that buy companies with strong businesses, solid management and strong dividends. I buy when the market is selling off quality companies. The ETF type things are severely punishing small and mid cap names within sectors. If you do your homework in a few years you'll be getting a nice dividend yield and have large capital gains. Buying/Selling an entire sector makes no sense to me - in each sector some companies are competing and winning and some companies are competing and losing...... I'd much rather buy the winners and leave others to own the losers....... in a few years it will be back to "forget sector investing and buy the winners".
    24 Sep 2010, 08:34 PM Reply Like
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