Interesting, but these kind of black box decision rules rarely have any relevancy to what actually happens. Either past patterns repeat, or this time is different. The key is to figure out which, and act accordingly.
The Last Days of the Long Investor? [View article]
If you can lose 30% of your capital in 5 trading days, you are a speculator, not an investor.
Maybe you should take less concentrated positions or not use leverage.
For an investor, who sizes positions properly, the short term volatility provides opportunity to make money. When a well-thought-out position goes against you, you are not wiped out, you just put more money in. Eventually, when the position rebounds, you are handsomely rewarded.
Are Subsistence Wages Killing the US? [View article]
Why must we have higher taxes to fund the war? Can't we just keep taxes the same or cut them, and then spend less in other areas? Surely you don't think that the war on terror is the MOST wasteful spending that goes on in our government?
Mish, How about this? The Fed is creating (money-based) inflation. Meanwhile,too much consumer debt, plus the inability or unwillingness of banks to lend is creating (lack of credit-induced) economic contraction. Both commodity inflation and the credit crunch inhibit the ability of consumers to spend on discretionary items. Stagflation.
Investing in Stocks: Emotional vs. Financial Costs [View article]
Why Buyers Might Take October Off [View article]
The Last Days of the Long Investor? [View article]
Maybe you should take less concentrated positions or not use leverage.
For an investor, who sizes positions properly, the short term volatility provides opportunity to make money. When a well-thought-out position goes against you, you are not wiped out, you just put more money in. Eventually, when the position rebounds, you are handsomely rewarded.
Are Subsistence Wages Killing the US? [View article]
Barry Ritholtz Sees More Upside in Commodities [View article]
Unstoppable Credit Contraction [View article]