CloroxCowboy

Some Advice from Warren Buffet for Difficult Times

I agree with half of Buffet's mantra above - using fear and greed sentiments to help timing. As Jim points out though, holding forever is probably not the best strategy if you consider that the past 50 years could have simply been an inflationary period in the macro time-scale. I don't expect markets to reverse to 1950's prices, but I do expect them to flatten out considerably. The rest of the world has closed the gap on the US since WWII and we no longer have many of the market advantages that once existed.

With that said, my personal strategy is to buy cautiously and incrementally on downturns such as these. But instead of holding forever, I get really crazy and actually take a profit when prices go up again. People love to say that they got in on a certain company before everyone else, but how many of those people get out at the right time to turn a paper profit into a real one?