johnbee

Give Me Three Reasons to Stay in This Market

There are no magic formulas. If there were we would all be rich. Its alchemic formulas that have brought hedge funds to their knees,
apart from the obvious ones of low debt, good dividend cover and good casg reserves to exercise caution. Indexes always give a false impression long term since the moment a stock looks bad the powers that run the index kick it out and replace it with something that looks better. Charts only work when enough people believe in them to follow them. Otherwise they are bunkum. There is no precedent for anything in this life. Once you know that you learn much (something that lawyers don't as precedents earn them their living). So all you can do is to cherry pick. If you want big upside odds then pick the start ups and try to study a particular industry but get a spread of companies since investment and fortune is at best a percentage game. The trouble is that its the VC's that get hold of many of the cherries at ground floor level as so often regulations said to be to prevent the uninitiated are in reality designed to keep the small man out. Back your hunches. That's all you can do. Timing is important and so now with the market down 50% there are some at last. Most investing strategy is simple common sense. Don't let experts fool you. They call themselves that to justify their commissions on your dealings. That's their bread and butter and if you don't have something similar going for you to earn your living you shouldn't be investing.