Here's a statement of the obvious: The opinions expressed here are those of the participants, not those of the Mutual Fund Observer. We cannot vouch for the accuracy or appropriateness of any of it, though we do encourage civility and good humor.
One of the most popular sayings in markets and also one of the most dangerous for investors. Why? Because the “market” can be very, very wrong – often at the worst possible time.
YES, the market is always RIGHT! The reason we question this statement is that commentators mis-speak when they say things like "the market missed expectations". What they should say is "expectations missed market performance". The market does not account for errors in analyst's calculation.
Reading this link, I came to the conclusion there are only two rules to investing:
1. The market is always right, regardless of your expectations. 2. Buy low, sell high
In many of the examples, one should be selling as the price is increasing exponentially, not buying more. As a friend who was a stockbroker (not the same as a stockbroker who was a friend) told me: "be patient, don't be greedy".
NOTE: These comments apply only to longer-term investors. I would not attempt to give advice to short-term traders, especially those using sophisticated investment products such a derivatives, etc.
Comments
Reading this link, I came to the conclusion there are only two rules to investing:
1. The market is always right, regardless of your expectations.
2. Buy low, sell high
In many of the examples, one should be selling as the price is increasing exponentially, not buying more. As a friend who was a stockbroker (not the same as a stockbroker who was a friend) told me: "be patient, don't be greedy".
NOTE: These comments apply only to longer-term investors. I would not attempt to give advice to short-term traders, especially those using sophisticated investment products such a derivatives, etc.