tag:blogger.com,1999:blog-2335748440449035592.post8870976433431573385..comments2008-10-15T15:38:28.875-04:00TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2335748440449035592.post-90092759180112161382008-10-15T15:38:00.000-04:002008-10-15T15:38:00.000-04:00lol<BR/>this is unprecedented stuff<BR/><BR/>even in 2002 the most damage was taken by companies with no earnings or no prospects<BR/><BR/>now companies with fine prospects are going for 2,3,4,5 PE ratios<BR/><BR/>if you have a 5 year time frame you should buy now and forget about it<BR/><BR/>as a fund manager everyone is focused on the day to day, and analyzing you and saying "this guy lost his touch" or "what is this idiot doing" if you bought and just sat - because while it might work out in 4 years, if it doesnt work out in 1 year you will lose all your assets - they will flee to the "hot name" in the industry and then you will be stuck selling stocks you like at whatever the market price is that day and then you will exaggerate your losses.<BR/><BR/>So the investors drive the market - investors chase after the hottest fund - if you don't have a stable base of people who would trust your long term judgement - you will get toasted in that "logic". Who cares if you are right in 4 years if you are not right in 1 year. It is as simple as that. I read in an article earlier this year that 60% of mutual fund trading is due to redemptions - meaning they are forced out of positions due to investors pulling out money. So your question posed as a hypothetical or as an individual investor is answered 1 way. In the real world with people panicking and/or chasing whatever is hot, it's a different answer. I know nothing is hot now but many funds lose a lot of assets after just 1 bad year.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-36516647885960267102008-10-15T15:14:00.000-04:002008-10-15T15:14:00.000-04:00Being relatively new to investing, at what point do estimates get slashed and prices drop enough where you'd just buy and hold because things are so low that you don't want to deal with the day-day price movements? It seems earnings reality is setting in, and with a 5% miss and lowered guidance resulting in 30% price drops, what else can go wrong. Just wondering why I'm stressing instead of picking good stuff after an earnings miss resulting in a PE 2 and walking away from this until next year.crappyhttp://www.blogger.com/profile/17601884181311375715noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-55171101900052849122008-10-15T14:46:00.000-04:002008-10-15T14:46:00.000-04:00They wanted everyone to get a slice so it would not mark the bad banks - i.e. if everyone takes a slice then there is no stigma<BR/><BR/>i waited for 952 today to go short but I'm frankly just tired of this market. I cannot invest at all. It is useless.TraderMarkhttp://www.blogger.com/profile/06241756200482130281noreply@blogger.comtag:blogger.com,1999:blog-2335748440449035592.post-51204742546674771622008-10-15T14:38:00.000-04:002008-10-15T14:38:00.000-04:00Does WFC really need our tax money? Why give WFC any of the money from the bailout? Did you go short when S&amp;P 500 sliced 960?minaccesshttp://www.blogger.com/profile/00855929558350004653noreply@blogger.com