The Market Is Doing A Great Job Reinforcing One Of Our Timeless Aphorisms
The aphorism I am referring to is that a stock that drops 90% can still drop 90%.
I got a chuckle yesterday out of President Obama's remarks that stocks were cheap. If the market ultimately drops to our final target zone, we will see substantially more stocks drop another 50-90% or even fade away. A stock that drops 90% can still..............
This is often a problem with highly intelligent and/or successful people. They tend to range outside of their expertise to give opinion on anything and everything. Opinions are fine but not necessarily reflective of core competency. Personally, I'd be more than happy to share my opinion about the future of technology and biogenetics as it pertains to the treatment of heart disease. I'll even perform heart bypass surgery on any takers. You may laugh but I am making a serious point. I like President Obama but there is no difference between this and him divining the value of equities. Successful investing requires very substantial skill that very few master. 80+% of professionals can't even beat the market over the long term.
Stocks are cheap enough that if the President wants to give me a stash of his money to invest, I'd be more than willing to put it to work. And, I'd be willing to personally book any gains and pass back any losses. You know. Like political policy we have seen over the last handful of decades. Policy we continue to see from both parties while Rome burns.
I got a chuckle yesterday out of President Obama's remarks that stocks were cheap. If the market ultimately drops to our final target zone, we will see substantially more stocks drop another 50-90% or even fade away. A stock that drops 90% can still..............
This is often a problem with highly intelligent and/or successful people. They tend to range outside of their expertise to give opinion on anything and everything. Opinions are fine but not necessarily reflective of core competency. Personally, I'd be more than happy to share my opinion about the future of technology and biogenetics as it pertains to the treatment of heart disease. I'll even perform heart bypass surgery on any takers. You may laugh but I am making a serious point. I like President Obama but there is no difference between this and him divining the value of equities. Successful investing requires very substantial skill that very few master. 80+% of professionals can't even beat the market over the long term.
Stocks are cheap enough that if the President wants to give me a stash of his money to invest, I'd be more than willing to put it to work. And, I'd be willing to personally book any gains and pass back any losses. You know. Like political policy we have seen over the last handful of decades. Policy we continue to see from both parties while Rome burns.
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