"January 15, 2013
Rothschild: How He Used To Invest
"It may have been Meyer Rothschild, the German banker and patriarch of the legendary House of Rothschild who, when asked how he got so rich, attributed his success to two things. He said he always bought when there was blood in the streets - panic, chaos - when despondency gripped the markets. (in old man Rothschild case, investing amid the turbulence of the Napoleonic wars, the blood was as likely to be literal as it was to be figurative.) And he always sold "too soon". He did not wait for the enthusiasm to peak. He always knew when to get out, and he got out in time with all his money." - in Adventure Capitalist "
Don't wait too long. If the market continues to rise, it may reach $13 a share, otherwise, it will get stagnant at around 12. You may want to keep an eye on S&P and if it rises closer to 1570, you may want to bail, selling anything that is risky. Right now the stock market is very close to the overheated and melt-down stage. All these small investors who just enter the market in chasing high dividend stocks will get burnt, badly. They have no ideas of the high risks of some of these high dividend stocks. If a professional investor can only hope for a 8% return, how in the world you believe we small investors can get a 11% return?
TECUA went up 21.3% in two trading days;
COH dropped 16.36% today;
IAG dropped 15.09% today.
Even AAPL had been dropping recently yet VIX was at its lowest. You may get a better odd in a casino, or buy some Casino stocks especially those who have holdings in Macau. Some of them had gone up 100%.
If you know anything about the stock market, you should know what all these foretell. This is reminiscent of 2007 with economic conditions similar to that of early 70s. LOL
January 16, 2013
I Just Wait Until There Is Money Lying In The Corner
"I just wait until there is money lying in the corner, and all I have to do is go over there and pick it up. I do nothing in the meantime. Even people who lose money in the market say, 'I just lost my money, now I have to do something to make it back. 'No, you don't. You should sit there until you find something." - in Market Wizards