Assetology

One Myth of Investing That Still Endures

Thanks for sharing.

This is a great calculator and it reveals that this 'temporary' setback is just that, temporary, especially if investors get back on the horse and buy a basket of solid, dividend-strong stocks.

My old money will be back on track in 3 years with a combination of dividends and contributions. Of course, this assumes that the dividends I have bought continue to be paid and without increases.

New and Future money should do well unless anarchy prevails.

ETFs For When Oil Falls

There was a considerable amount of money to be made on the recent and profound adjustment in crude oil prices. The low of HOD was $6.30 on the 11th of July with a subsequent high of $53.70 on December 5th. This represents an 850% change in less than 5 months. Anyone who has previously stated that oil prices reflect supply and demand should be hiding their head in the (tar) sand. Clearly this was speculation and manipulation rather than a price increase in lock-step with demand.

Is there opportunity to ride HOU up? Unfortunately, I think the increase in oil will be a little more prolonged and subdued than the drop and a long-term investor is far better off buying a solid energy company.

Give Me Three Reasons to Stay in This Market

Great comments johnbee!

I completely agree that common sense should be the foundation of any individual's investing strategy and that professional have their own agenda.

'Buy (near the Bottom), Hold and Sell (near the Peak)'

This should be the strategy of long, value investors.

Buy real companies with real profits.

Buying companies paying decent dividends makes the Hold period much more tolerable.

All We Have to Fear Is Fear and Slow Economic Activity

Nice post.
I like your calm and rational view of the economy and market.
When the real money moves back into the market then and only then will equities rebound and early investors will be rewarded.

Nobody can predict the bottom but selectively purchasing long positions and even using a little leverage should turn out just fine for patient investors with at least a 2-5 year horizon.

ETFs For When Oil Falls

Welcome to the HOD! I blogged about this vehicle in early June when the rate of change seemed too extreme to be sustainable. Nice to see this rise over $10 today (from a low of $6.30 on July 11th). The results so far have been solid and my planned exit will occur when oil hits $90 but I will reassess at $100.