Discussion in 'General Investing Discussion' started by Tropo, 8th Apr, 2009.
What You Don't Know Will Hurt You
Essential info for investors!!
Well....it’s a wakeup call (IMHO) for those who still believe in Santa Clause...
It nicely highlights that there is no such thing as easy money or a free lunch, but on the flip side if you are willing to put in the hard yards there can be some very nice rewards for your efforts.
I think it also very appropriately highlights that "being in the market" because you fear missing the recovery that will come when we reach the bottom could cost you a lot more than you can potentially gain.
LMAO! Awesome analogy and actually sounds a lot like my own golf game. I can play 18 holes and shoot largely pars and boogies, with the odd birdie, but my handicap isn't 10 - 12, because without fail there is always a hole or two when I shoot 8 - 10!
Now if only there was a fund out there that could guarantee missing all the 3+% down days, whilst not missing any of the 3+% up days
Good point and seems pretty key. Keeping an eye on economist predictions on bloomberg i really dont think they have a better idea of movements that are on the scale of days and weeks then anyone else. The day before the AORD fell 7 percent I would've like to have met anyone the who would predict it.
The first graph shows an investment fund that seems to be managed really poorly, catching most of the downturns and barely any of the upturn. They dont mention much about what industries and stocks the fund had invested though which is really the key point. Maybe they took the chance on some risky small cap mining stocks and lost alot of money, my point is the article makes no mention of the bussinesses they invested in which for me is a key part of stocks. This doesnt change the fact that the excuse they use really does make no sense but the article takes it to an extreme point of suggesting you should try and predict large movements in the market on a scale of days or weeks, which I've never heard of anyone doing consistently for years.
Number one i dont think anyone can make those predictions on really bad or good weeks consistently and also costs of trading esepcially in a volatile market will probably erode profits really quickly as people constantly adjust their protfolio because they read an economists prediction the market will have a shocking month. Again if someone can pick a really good or bad week or month consistently good on them, and give me their number.
Just find yourself a fund manager who still uses Historic Pricing for their funds Few still out there....
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