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M* Russ Kinnel: A Few Investment Lessons I've Picked Up Over The Years
With hindsight, we can see that the low point for the U.S. economy was the best time to buy in, even though it felt like the worst. The relationship between economics and the stock market is not as clear as most people think.
Most of us would agree that buying something for less than it's intrinsic value is a "no brainer". The problem with stock and bond investments is most of us have no clue as to what the intrinsic value of these assets are. We understand the allure of momentum.
What we need to learn is how to identify "intrinsic value" and hold non-correlated assets that can be used to buy into (deeply) discounted stocks and bonds when the opportunity presents itself. Nothing removes market risk like buying under valued assets.
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What we need to learn is how to identify "intrinsic value" and hold non-correlated assets that can be used to buy into (deeply) discounted stocks and bonds when the opportunity presents itself. Nothing removes market risk like buying under valued assets.