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Posted By Barry Ritholtz On June 8, 2005 @ 6:00 pm In Financial Press | Comments Disabled
The short answer is no; I’ve been thinking about this issue ever since I was invited to participate in a a major publication’s "Year-in-preview" back in 2003. I proposed doing "counter-programming;" Running a column looking at how poor most forecasters do a year out, dissecting their predicting track records, and more stuff like that.
Their answer was a polite a "Um, no thanks, we sell a lot of advertising in that double issue — but do you want to particpate anyway?"
My answer was "Sure, why not."
The longer answer: first off, I stand by that March 29th  Bear call — it was pretty good. The Dow pulled back to 10,000 (from nearly 10,800) and the Nazz fell from 2020 to 1890, a 6.5% drop.
I’ve had MUCH worse forecasts than that one — this time, we
didn’t go as low as I thought we possiblym might. (10,00 — I was looking for 9800, then possibly 9000).
Worst case scenario: I was out of the market during an ugly sell off. And since reversing myself a few weeks ago, my entry is net positive.
If thats my worst call, I can live with it!
Actually, I thought last July 27th’s (04) Buy call  was worse (it was way too early) — we
dropped hard another 2 weeks — I only got bailed out by a very
powerfull market surge.
I also said short GOOG at 185 on Power Lunch late March ’05 — but as always, there was an escape hatch — it included the stop loss to cover at 200 and go long.
Its forgiveable to be wrong; Its unforgiveable to STAY wrong . . .
Article printed from The Big Picture: http://www.ritholtz.com/blog
URL to article: http://www.ritholtz.com/blog/2005/06/why-folly/
URLs in this post:
 Apprenticed Investor column: http://bigpicture.typepad.com/comments/2005/06/apprenticed_inv.html
 March 29th: http://bigpicture.typepad.com/comments/2005/03/the_trap_is_set.html
 July 27th’s (04) Buy call: http://bigpicture.typepad.com/comments/2004/07/equity_markets_.html
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