lohalloran wrote:
Cramer is a hack and buffets method is not going to work in this market.
In fact your should fade every single recommendation cramer makes and you will be very rich.
I've been telling you all the market is going sub 600 and probably sub 500 for a long time. Don't go long anything now.
Timing the market doesn't work:
1) "Individuals who cannot master their
emotions are ill-suited to profit from
the investment process." - Benjamin Graham...(Over the period from 1988-2007, the average stock fund returned 11.6% annually, while the average stock fund investor earned only 4.5%.)
2) "History provides a crucial insight regarding market crises: They are inevitable, painful, and ultimately surmountable." - Shelby Davis...the stock market continued to rise from the early 70s until late 2007 even with the following horrible conditions: '73-'74 bear market, 70s inflation, junk bonds, LBOs, and 1987 Black Monday, Savings and Loans Crisis, Russian Default, Asian contagion, Dot Com Bust, and horrible economies in early 80s, early 90s, early 2000s.
3) "Far more money has been lost by
investors preparing for corrections or trying to anticipate corrections than has been lost in the corrections themselves." - Peter Lynch...The patient investor who remained invested during the entire 15 year period (1993-2007) received the highest average annualized return of 10.5% per year. The investor who missed the best 30 trading days over this 15 year period saw his return plummet to only 2.2%.
4) Despite inevitable periods of uncertainty, stocks have rewarded patient,
long-term investors." - Christopher C. Davis...from 1928-2007 the stock market returned positive returns in 59 of 80 one year periods and 71 out of 76 5-year periods.
5) "Be fearful when others are greedy.
Be greedy when others are fearful." - Warren Buffett..."On the heels of these three terrible years (2000-2002), investors turned pessimistic and placed far less money into stock funds in 2002, right before stocks delivered one of their best returns ever in 2003 (29.7%). After a difficult start to 2008, fearful investors pulled money from stock funds."
6) "The function of economic forecasting
is to make astrology look respectable." - John Kenneth Galbraith..."Do not waste time and energy focusing on variables that are unknowable and uncontrollable over the
short term, like the direction of interest rates or the level of the stock market. Instead, focus your energy
on things that you can control, like creating a properly diversified portfolio, determining your true time horizon and setting realistic return expectations."
7) "You make most of your money in a
bear market, you just don’t realize it
at the time." - Shelby Davis..."It is important to understand that periods of market uncertainty can
create wealth-building opportunities for the patient, diligent, long-term investor. History has taught us that investors who have adopted this mindset have met with tremendous success."
8) To summarize the above men:
Avoid Self-Destructive Investor Behavior -- chasing short-term HOT items.
Understand That Crises Are Inevitable -- Just part of a long-term investors path to wealth.
Don’t Attempt to Time the Market -- Study after study shows that those who try to time the market fare much worse than those who are in for the long haul.
Be Patient -- Historically stocks have rewarded patient, long-term investors.
Don’t Let Emotions Guide Your Investment Decisions -- Great investors throughout history have recognized the value of making decisions that may not feel good
at the time but that will bear fruit over the long term–such as investing in areas of the market that investors are avoiding and avoiding areas of the market that investors are embracing.
Recognize That Short-Term Underperformance Is Inevitable -- That statement stands on its own.
Disregard Short-Term Forecasts and Predictions -- Also this stands on its own.
Find all of the above out there on the internet.
Happy investing.