I Eat Bear

To be sure, the patience of investors is being tested right now. Strategies of buy and hold, against shorter term day trades, strategies of longs versus shorts, and yes, even sector strategies, are all under the microscope.

Far be it from me, to say I got them all right. But, I do have some insights. And, yes, many of those are opinionated. Imagine that from me,, the confirmed non-believer in Uncle Funny (formerly Uncle Sam), and congress (the court jesters).

Well, let me say this. I don't think Uncle Funny and the court jesters had a plan to turn around the economy, but their LACK of a plan may have done something positive.

It does not matter how poorly planned the plan, if it is percieved to be beneficial. Or even, for that matter if the plan has any merit at all. It matters, that action was taken. Mostly, the wrong ones mind you, but they were actions.

And, despite HUGE losses for most people, in their portfolios, I do believe, in a life, after. That is a statement about stocks, and ONLY about stocks.

Yes, I rode down the market crash. Some will call me incredibly stupid, and I would find that hard to disagree with. I have paid DEARLY for that. Then again, I am also part of it's rebound.

All stocks do not drop at the same time, and all do not recover at the same rate. I look at MONTHS ago, and my stocks on the top of the heap, are now the bottom. And many of those I would have NEVER invested in, are the ones recovering first. But, investing is about TWO concepts. A belief in the company, and especially, the management of the company,,, and TIME. The rest will take care of itself.

To some degree, I am an optimist. No matter what price you buy in at, in time, the market, and your stock value, will go higher. Just last year, the DOW topped 14,000. At some point, it will surpass that number. Yes, I do believe that. It may take a while, but it is just about as sure as raindrops.

And, NO, I do NOT approve of shorting strategies. Very few shortist, ever get enough right, to make the strategy worth while. So, over the long term, my bet, is TIME will make you a winner.
With the DOW at 8750, and undeniably a tough buy point, because a market correction is inevitable (to the lower), It makes less than NO sense to me, to NOT be a BUYER. No, you are not buying at the bottom. Since when, did most investors EVER do that.

OK, there is merit to the day trade right now. Too many stocks are having BIG swings, on a day to day basis. I too have tenencies, for day trading. Call it the GAMBLER in me, but even I know, it is gambling. In the LONG term, day traders lose too.

So, what is an investor to do. Number ONE one the list, is become active. Monitor stocks, and your portfolio. Look at what it costs, to be in FUNDS, and also look at the non-producive (usually) use of YOUR money. Uninvested money, is non-productive use. Everyone BELIEVES in SOMETHING. Up, down, stocks, bonds, treasuries, foriegn curriencies, gold, copper, pig bellies, pets, oil, or a ruby for grandma's belly button. They all go up, and down, and not at the same rate.

This is my last statement. Ok, most of us got raped. It did not feel good. But, we can go on.
Life may only be half of what it can be. But, it can be, and chances are darned good it will be,, at some point,, much better.

Despite Uncle Funny, and the court jesters. Not because of them.

I wish I could give you good investment choices right now. I REFUSE to invest in banks, but they may be your best return.

But, for those of you so inclined, despite what seems TODAY to be a market top, in a stock, or even sector,, I bet it is not.

So, I remain,, fully invested, and I will beat the market. If I had more funds, I would be a buyer,, yes, even at this undeniable top,, because it will seem a pittance later.

Comments: View Comments |  Friday June 5, 2009