Posts filed under “Apprenticed Investor”
A friend I used to work with who buys distressed debt/CDOs emails me this: I don’t remember when you had this on your site, but it caught my eye. I printed it and hung on my computer screen. I read it once a day. It restores in me faith that my perseverance, honesty and respectful…Read More
Yesterday, I discussed why the Barrons vs Cramer debate was irrelevant, and why people should never invest based on what they watch on TV. A number of commentors observed that despite the many exhortations to think of television as merely entertainment, many a fool are still watching Mad Money for investing insights. When I wrote…Read More
This time of year, many investors are looking at their asset allocation, and stock selection. Perhaps they should be asking themselves, “How dense are my dopamine receptors?” As it turns out, some people process the brain’s “reward” chemicals differently, depending upon the number of receptors they have, The BBC reported on a recent study by…Read More
A friend asked me an interesting question over the weekend: What was the thing about writing the book that surprised you the most? Lots of things about the process were pretty much as I expected. The deadlines, the structural changes, the battles with publishers/editors — were all pretty much as you would imagine. The importance…Read More
No one knows the future, but we can play the odds when they are in our favor. Today was one of those days. What was looking like a shaky retest now looks like a reverse head & shoulders low (or a triple bottom). For those of you who have been paying attention to both the…Read More
Markets have come increasingly close to their October 10th lows. Contrary to what you may have read or heard on TV, this is precisely as it should be. Why? Major lows get retested. That is a basic tenet of market behavior, and crowd psychology. (This has been verified by a variety of studies by different…Read More
Note my 5 stages of grief meme has taken hold:
The five stages of death are denial, anger, bargaining, depression and finally, acceptance. We bring it up, because right now, Wall Street is really struggling with that last one, acceptance.
We’re talking about the death of that time honored investment strategy, buy-and-hold. Investors just can’t let go, and they need to.
Thanks to black October, the S&P 500 has now lost a fifth of its value over the last 10 years. According to Jeff Macke, “2008 is the year that will go down in history as the year that long term investment died as a thesis.”
And that means it’s time to move on.
But just because buy-and-hold is pretty much dead and buried, that doesn’t mean you can’t make money anymore.
The Death of Buy and Hold