This ain’t your daddy’s market anymore, baby!

If you’re an avid reader of this board, you may have noticed I didn’t bother posting anything new over the past several days.
 
That’s because despite the blips and dips in the market — there’s really been nothing earth-shattering to report.
 
Someone shot me an email saying he finds it difficult to keep money in this market, and questioned why I still have such passion for the street that I’ve devoted an entire blog to the subject.
 
There’s no quick answer for that, other than perhaps I believe it’s important to keep your eye on your money.
 
And it doesn’t matter where that money is, so long as you are comfortable with the decision you’ve made.
 
Some people prefer just putting their money in an Orange account at ING.
 
Others feel more comfortable with a safe, small return from CDs.
 
My personal preference is to find quality companies that are getting unfairly beaten up in a bad market and wait for the perfect pullback by the street to present the perfect buying opportunity to snatch-up a good stock cheap.
 
I don’t pretend to have any inside word or mystical powers, but my gut tells me that companies like Heinz and Proctor & Gamble are still going to be around when this market recovers — and will likely be trading at higher prices in a bullish market.
 
It’s the old “buy cheap & sell high” philosophy.
 
I also prefer moneymarket accounts over CD’s.
 
Again, just a personal preference.
 
And I think bonds are the investment to keep an eye on.
 
Again, no inside information or psychic powers that any of my ideas will pan out — it’s just the investment strategy I’m most comfortable with.
 
What I don’t have much use for is anyone who begins investment advice to others with words such as, “Over the past (fill in a number) years, the S&P has outperformed……” Or “Just put your money in an index fund, if you don’t know what to do with it….”
 
Idiots.
 
And only another idiot would listen to them.
 
The simple response to anyone spewing such nonsense is to simply point out that a stock’s prior performance is absolutely no indication of what will happen in the future.
 
In other words — this ain’t your daddy’s market anymore, baby.
 
The rules have changed. The street doesn’t sleep at night. News is disseminated 24/7.
 
I simply disdain silly freshmen-style rhetoric by people who sat through a few years of college at “X” University, and now come out flashing their degree in economics and believe they have more insight than someone who’s actually been investing in the market over the past couple of decades.
 
Some of the best investors on the street never sat through a day of Economics 101.
 
It’s about reading, researching and picking that perfect moment to snatch up a quality investment that will give you a much greater return than anything else out there.
 
The bottom line — do your own due diligence, and keep your own eye on your own money.
 
I’ll leave you with one tip:
 
One of the first things I do each morning is to check the futures market…
 
And speaking of futures — I’ll see you Monday.
 
(The Usual Disclaimer: Don’t base any investment decisions on anything you read in my little blog — do your own research — or at least enough research to pick the right professional to do it for you.)
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2 Responses

  1. Nice writing. You are on my RSS reader now so I can read more from you down the road.

    Allen Taylor

  2. […] MyInvestmentStyle […]

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