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Originally Posted by bruce negro
Originally Posted by freakydestroyer
You posted 3 articles by the same guy. I skimmed through some of it. It's clear that he has a bias against any style of investing other than his own. I actually think he has an ulterior motive, he probably just wants to tell his investors in his Asset Management group "It's okay we're down 10% right now, but in the long run it will fix itself and we will be up". But hey if his strategy works for him and he sleeps well at night good for him. You mean to tell me that the Market Leaders like AAPL, CMG, PCLN were not bought up by institutions over their big runs? I mean look at the volume, it happened gradually. It didn't happen overnight. Sudden swings happen with penny stocks.Originally Posted by bruce negro
http://www.cbsnews.com/83...estment-is-a-losing-bet/
http://www.cbsnews.com/83...-management-fails-again/
http://www.cbsnews.com/83...ing-is-gaining-momentum/
His credentials speak for themselves. The concept of actually being able to time the market is a fallacy. Momentum swings in the market faster than an NCAA basketball game.
..........Look up Larry Swedroe. And this isn't a new idea, have you not heard of the Wall Street Journal Dartboard contest? I'm also saying that betting on momentum is similar to bottom-feeding--you WILL get burned. Priceline, Chipotle and Apple are doing well because they're solid corporations, so it would be best to invest in them because they are solid, not because there's a bit of momentum with them. Anyways, I can give you a million other articles giving you the same details, but to cut through all of the bull, actively predicting the market to produce consistent gains does not work. End of story.
A lot of people have this misconception about trend following. Trends do no start or end overnight. It is a gradual process. Don't think of it as the classic "pump and dump". I like to look at strong stocks when they are at their strongest. PCLN, CMG, and AAPL are some examples of such stocks. They've had monster runs because institutions have stepped in, then buyers, and more buyers. When they start to break down there will be clear signs of weakness before they go into free fall, which leaves ample time to make an exit. You can probably also find a billion articles telling people to not partake in the stock market at all. Oh it's too risk just throw your money into a savings account to compound over X amount of years. I'm not too fond of holding anything for years and rolling with losses during downtrends and corrections nor am I trying to hit a home run and get 5000% returns overnight. But I do not dismiss either of those strategies, because it might work for someone.