I think you are right on EZEN Max and I am doing much the same thing....adding specific plays at today's prices even if I already own a lot of it. This is shaping up as one of the best buying opportunities I have seen in many years now. There is wanton dis-regard for imbedded value, rising rev and rising net inc ref a whole slew of stocks that just keep getting sold due to fear plus tax loss selling. But tax loss selling implies that one has profit to protect and this has not been a banner year for the micros or mid/large caps....in fact opposite is probably the case for a lot of investors...so tax selling will end soon and then it is just pure fear propelling this selling.
The only way I see that this could go against me is that if everything I have learned over the past 20 years is now completely inapplicable. That the game itself ref fear and greed has changed. That 'buy it when nobody wants it, sell it when they can't get enough' does not work anymore.
That simple stratagem, first voiced by Bernard Baruch ,has been governing buying/selling for a profit for thousands of years. I just don't think the dynamics underlying today's markets have changed THAT much in a year.
It is usually the simple stuff that survives the ages...or ref the stock market the past 8 decades.
I recall some of the 'new ways' to look at economic metrics in the bull that went bust:
The Fed does not matter anymore
This time it's different
Counting page hits (eyeballs) instead of dollars
All that new stuff worked until it didn't work anymore and we arrived at March 2001.
I am going to stick with what has worked for me in the past. |
