Down goes the Dow

Sally V,

I am very serious here and take it any way you like. The mistake most people make is to believe they are "missing out" by being patient. I can assure you this GOOG will at the very least be cut in half when this market rolls over. Why? The stock is over owned and perceived to be "safe" growth. If I recall correctly GOOG in its various forms is one of the largest components (behind APPL) of the S&P 500. So, if the S&P 500 drops GOOG will go down more than the index because of its component part. The same is true when you look at GOOG as a component of large growth indices.

The temptation will be to chase the index. They say "patience is a virtue," in the world of investing it is a necessity.

Go forth and take your own road, in the end it is your money.

Igy

Ok, "sell and hold" then.

Sally V,

Not sure of the context of your shorthand.

Interesting that the stock was at $500 at the start of the year. The analyst community are like so many lemmings, all piling on to increase their price targets after the stock has already made a huge move. I suppose they have to feed the beast or lose their job. No company fundmentally improves that quickly. It is not as if GOOG was an undiscovered gem. Really sad.

Igy

You said "sell GOOG, hold cash". So "sell and hold".

And don't you work for Wall Street?

Sally V,

Now, now don't get testy.

Igy

Well, you are one of "them".

Sally V,

Van Morrison was lead singer of Them, no I wasn't in that band.

Igy

I was thinking more along the lines of the movie.

Sally V,

Oh yes Them the movie. The original is much better than the remake. I was friends with Steve Whitmore the son of star James Whitmore. Steve used to come over to our house quite a bit when we were in elementary school. I fell in love with the music of Van Morrison and Them in junior high.

https://en.m.wikipedia.org/wiki/Them_

(band)

Best of luck with your investments.

Have a good weekend.

Igy

This week saw continued good employment news in the US, accompanied by better housing data than many expected. In Canada, the Liberal Party won an election victory, bringing to an end a decade in power for the Conservatives. In China, economic growth for the most recent quarter came in at 6.9%. This is the slowest rate of Chinese growth in 6 years and China, once again, cut interest rates this Friday. Nonetheless, this rate of growth remains high by global standards and was a relief to those who feared a sharply weakening Chinese economy. In Europe, the European Central Bank left their accommodative policies unchanged, but hinted at more stimulus in December, which was viewed positively by markets.

At the time of writing, global stock markets, as measured by the MSCI AWCI index, have risen over 9% [SM1] from the lows we experienced in late September. This serves as a reminder of how quickly investment sentiment can swing between the emotional extremes of fear and optimism.

More importantly, we think this shows the importance of adhering to a consistent investment strategy. Those who sold stocks based on fear over the summer have missed a rally, and may still be on the sidelines. Those who have maintained a long-term strategy of remaining in the stock market, a strategy we generally advocate at FutureAdvisor, generally have seen gains and avoided the costs associated with excessive trading, which can erode savings.

Of course, a few months is a very short period to analyze any investment approach. However, this shows what we believe has been true over many decades: a diversified portfolio including stocks historically has offered attractive returns for those able to remain invested and look through temporary market gyrations.

However, dips in the market are not necessarily a reason to remain completely passive. FutureAdvisor views market volatility as an opportunity for tax loss harvesting and portfolio rebalancing, as appropriate for a client’s account. . We believe this strategy has the potential to improve both pre and post-tax returns.

[quote]agip wrote:

"No idea what hedge funds are doing, but probably up 0-2%".

Classic.

What aboutery wrote:

"No idea what hedge funds are doing, but probably up 0-2%".

Classic.

Hi, K5! Hey, have you figured out how much money you lost by sitting out the bull market? How about an update?

agip wrote:

[quote]Ghost of Igloi wrote:

agip,

Here are some facts:

*173 of 500 S&P companies have reported thus far; year over year earnings growth -3%

And again, stocks go up because of predictions of the future, not what happened last quarter.

In 4Q or 1Q when revs start going back up again because we've lapped the energy collapse, will you turn bullish? Those buying today are buying in front of the backwards looking folks.

Clear as mud.

K5, please answer my question.

[quote]agip wrote:

ok so when we have mid single digit revenue and earnings growth you'll be ok with a PE of 17 and then you will be bullish?

This guy actually gets paid as an investment advisor?

Not so good:

http://www.hussmanfunds.com/wmc/wmc151026.htm

Nothing new there. The market goes up, the market goes down, repeat.

Prognosticator wrote:

Nothing new there. The market goes up, the market goes down, repeat.

And this means what? You should stay in the market as it collapses? Staying in the market in late 2008 work real good for you, did it?

Actually it did. Buying then turned out to be great for me.