SubscribeAll Posts Tagged With: "bear markets"
Understanding The Credit Crisis… Through The One Eternal Truth of Investing
The credit crisis has been with us for 14 months. But it is only now that it is turning into a full-fledged panic.
Mutual fund outflow numbers show that shareholders are yanking money out of both stock and bond funds. So many investors have jumped into T-bills that the yield has dropped below one half of one per cent. (In their rush to safety, they are guaranteeing themselves a substantial negative return after taxes and inflation.)
When I was interviewed on Oprah & Friends last week, one caller asked whether I agreed with this theory that the economy and stock market are…
14Oct2008 | Investment U | Comments Off | ContinuedBear Markets: Your Gift From The Financial Gods?
Although we saw a furious short-term rally late last week, we have entered into official bear markets territory as of early this month. (Bear markets are defined as a drop of 20% or more from a previous high.)
This is a good thing. Legendary investors understand this. Ordinary investors don’t.
If you haven’t spent much time buying stocks getting excited about a bear market doesn’t just sound counter-intuitive, it sounds nuts. After all, how can you feel appreciative watching the value of your life-savings grind lower?
But try thinking like a chess player, a few moves ahead.
Every stock investor knows that you’re supposed to…
24Jul2008 | Investment U | Comments Off | Continued
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