Friday, November 07, 2008
Something Else: this time last year
Around this time last year there were plenty of stock market experts sprung out from everywhere in town. We all heard and read about how they picked the right stocks and made fortune out of it. They were maximum bullish and they put money where their mouth was. They were the stars of the time with huge followers.
This year we have a new group of stock market experts - those who made fortune (relatively) by literally putting money where their pillow was, i.e. under a mattress! Very soon they'll become superstars too. They'll hold investment talks and write books with titles like "Top 10 mattresses to keep your wealth in 2009" or better yet "How I made my fortune by just sleeping on my mattress".
Today's superstars despised stocks so much, just as much as yesterday's superstars despised cash.
Last year it was buy stocks and get rich, this year it is do nothing and get rich! I think both defy common sense, unless you believe the world is only in black and white.
This year we have a new group of stock market experts - those who made fortune (relatively) by literally putting money where their pillow was, i.e. under a mattress! Very soon they'll become superstars too. They'll hold investment talks and write books with titles like "Top 10 mattresses to keep your wealth in 2009" or better yet "How I made my fortune by just sleeping on my mattress".
Today's superstars despised stocks so much, just as much as yesterday's superstars despised cash.
Last year it was buy stocks and get rich, this year it is do nothing and get rich! I think both defy common sense, unless you believe the world is only in black and white.
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You are right, the "experts" are usually running in the same direction as the market.
Cash is nice now, IF you had sold very early on in the downturn. But then, what to do with the cash? It gets virtually no interest, you're loosing out on inflation. Back into the market, but when? Now? Or wait a bit? Gold! There are lots of gold bugs at the moment, but they have been constantly wrong for 20 years. What would make this different? Get into T-bills with its tiny amount of interest? The dollar is strong now, but with the unlimited printing of them going on at the moment, the dollar has got to slide.
Lots of thoughts to keep us investors awake at night! :-)
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Cash is nice now, IF you had sold very early on in the downturn. But then, what to do with the cash? It gets virtually no interest, you're loosing out on inflation. Back into the market, but when? Now? Or wait a bit? Gold! There are lots of gold bugs at the moment, but they have been constantly wrong for 20 years. What would make this different? Get into T-bills with its tiny amount of interest? The dollar is strong now, but with the unlimited printing of them going on at the moment, the dollar has got to slide.
Lots of thoughts to keep us investors awake at night! :-)
# posted by 
: 2:44 PM, November 10, 2008
: 2:44 PM, November 10, 2008Subscribe to Post Comments [Atom]
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