tedS

The Humpty Dumpty Economy

Hi, Peter -

I agree with the need to flush the system so that its three clogged pipes (falling home prices and foreclosures; the automakers' financial disaster; financial crisis due to the unimaginable consumer debts) are cleared up. But the lawmakers will not listen to you, Peter. Why? It is a simple reason : they know that most Americans do not have the noble courage to sacrifce; they just want the status quo -- spend, spend, spend.

The Worst Is Likely Behind Us

Dear John, -

I am encouraged by your belief that "this is about as bad as things will get and the outlook going forward is much more positive". Thank you for the good research and good reasoning that is based on the "regression to the mean" theory.

However, for real cases (not statistically averaged) it can be painful, very painful. And that may possibly be true for the next 2 -3 years.

Do You Have the Guts to Buy?

Thank you all for your comments! The long-term, buy-and-hold value approach is very different from the buy-and-do-homework style of Jim Cramer. And it is completely opposite to the day-trading approach that works well in bull markets.

How do you know when which approach is best? You do by trying all of them in your investing and learn by trial and error. If you do not make error sometimes (losing money), and do it right another time (making money), you will not know these methods well enough to be able to select the right one for the right occasion.

Right now when most stocks are down a lot, the buy-and-do-homework AND wait for the best time to sell them and reap the profit is the best. That's my opinion.