Wednesday, February 10, 2010, 5:23AM ET - U.S. Markets open in 4 hours and 7 minutes.
The economy is still the pits yet stocks are on a tear. What's an investor to do in these confusing times?
John Mauldin, president of Millennium Wave Advisors, admits the average investor doesn't "have as many good choices" as in the past.
Contrary to what "experts" have told the public for years, now is not the time for buy and hold, Mauldin says. "You can be a trader. You can ride the wave, I've got no problem with that but I don't think you want to buy something and hold it for five years."
That's because he thinks another correction is coming in the not so distant future.
Mauldin, who writes the Thoughts from the Frontline e-letter, does think there's money to be made in real estate. With prices so depressed in many markets, he says buying property on the cheap and renting it "is a prescription for making money."
I think we might have heard that one before...
He is correct about buy and hold being a losing strategy but the Wall St., Mutual Fund, Pension Fund, etc. financial industry is geared to selling to their clients based on buy and hold via 401k, IRA, Pension, etc. system in place. Wall St. will accumulate then rob the money again as that's the way the market works. Every 5 to 10 years they purge the losses that they can no longer hide. Get smart buy some gold, silver, platinum and hold it just like the FED does.
Nikkie not recovered since 1990, Nasdaq not recovered since 2000, these should be lessons to anyone thinking of using a buy and hold you may not see that money again for a loooong time!
I read several of the posted opinions of my fellow YFU and it seems we are in agreement that the root cause of the crisis was from our government. We still have the same people in power and they are still manipulating us all. We need to clean house to start a real recovery and I mean the house of Congress. We need real American citizens in Congress not these lifetime politicians that we are paying $193k++++ annually to for them to harm us and sell our country down the drain. People unit and take back your country... No Senator should be in office more than 2 terms (12 years) and no Congressmen/women should be in office more than 3 terms (6 years) otherwise they do too much harm to us all. VOTE OUT the INCUMBENTS in 2010.
This bounce in Dow is a complete sham. The Fed and WS are in cahoots over it. The Fed is throwing almost free money at big WS firms with the understanding that they will build "confidence" in the economy by pumping up the stock indices. It's just one more channel to secretly pump money into the economy. This cannot go on for long. When real investors do not participate, the big boys will be forced to take money off the table. Corruption knows no bounds these days.
Listening to this guy makes me think that buy and hold is an excellent strategy. How did "hold and sell at the bottom" work out for all you?
I think a correction is coming, too. But his opinion is garbage. We are now experiencing a second recession in this new age of information and trading, and the hounds said exactly the same thing back in 2001, pre 911. Buy and hold is over. We'll they were wrong weren't they. In general the Dow is a prop, nothing more than smoke and a mirror, and there's money to be made in the rest of the lot. You and I just don't have the resources and time to find them all, but they're out there. You just need to get ahead of the curve before all hell breaks loose from a PR or a bump from an earnings report. These guys made their money from start-ups like CISCO and MS, and they really aren't honest with you. Do you really think they are going to put us all on their honey picks? Let's be real here.
you can still buy and hold. just make sure it's oil, gold or ammo....
WWW.USDEBTCLOCK.ORG Big government can spend our way out of this recession... No problem, just keep printing paper money baby!! Get yourself some gold.
In a NUTSHELL: "Normally" if banks have sufficient liquidity, the government can borrow from the bank. In our case, banks were insolvent. Our economic stimulus plan was so large (intentional or not), it could not be financed domestically. Excess liquidity/savings from foreign countries had to be pulled in and these countries are once again financing our activities at a below average return. Even so, there was not enough foreigners willing to lend, so the Fed created this tool called monetary easing, which is simply printing money hoping that this money would partially cure the banks insolvency. The talk about "excess" capacity is simply untrue as much of the capacity is located in east asian countries that have enough demand to sop up production. Our economy is primarily a service oriented economy and excess capacity means we simply do not have enough service jobs available, hence the high unemployment. Companies profit therefore should not be viewed as a leading economic indicator, since it is distorted by the pumping of money and economic growth abroad. A genuinne economist (not a politician) would focus on its citizens' financial well being such as loan defaults etc...The government believes that moral hazard risk with consumers is greater than the corporation (it may be true since we can fire and better regulate management). This printing of money and giving it to corporation is what drives capitalism and consumers are just in it for the ride.
I just wish we would have a little correction now so i can jump in, make a little money (100k) and then jump back out.
WAIT A SECOND!!!!.......THEY ALWAYS TOLD US TO BUY AND HOLD.................WHAT NOW?????????????
An investment is long term. A gamble is an effort to make money on a short term basis! What are you saying then? The stock market as it is currently is a gamble. Just equate it to dice: You can roll the dice and all is good. But that could change on the next roll. Personallty, I believe the market is being manipulated from behind the scenes for appearance sake. So it probably is not so much a gamble other than you will get less and less for your dollar over time
Not exactly new, been hearing that for a yr! The idea is you can't buy something and then forget about it.. you have to watch. It's more 'buy and pay close attention. In other words, use ur brain......============================================= 'Maudlin' good name for a guest on here. If his first name was Bear it would be perfect. Bear Maudlin.
Terry- VOTE OUT the INCUMBENTS in 2010 sounds like a good idea. It will be very difficult to achieve since a majority of the voters are the beneficiary of the government handouts. This is an entitlement society.
Another post by an investor who missed out on this fantastic bull run. It's called "Sour Grapes". As long as there are bears like this there is money to be made in the market. When these pessimist finally jump on board that's when I will take my money and run.
You think a correction is coming Wayne. Wow.. I've only heard that for 6 months. But yes, the market goes up and down.Keep predicting it will go down and you will be right one day.============================= As soon as the guys on here go Bull, that's when it will happen!
Buy and hold working very well for me, thanks - but I don't buy the S & P indexes like this guy thinks everyone does. What a joke. Use your brain, buy good companies and hold them for a very long time. I'll listen to Buffett before I listen to Tech Ticker nerds.
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san - Wednesday October 21, 2009 09:10AM EDT
Nikkie not recovered sinsnce 1990, Nasdaq not recovered since 2000, these should be lessons to anyone thinking of using a buy and hold!