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Yes, it is that uncertain feeling until it proves itself years later in 2000 and 2007. That is one reason having cash give you that option. What has Warren Buffet bought lately?
That depends on whether you think this is an ordinary correction in a secular and continuing bull market or the beginning of the next bear market. Dollar-cost averaging is NOT good in the early and middle stages of a bear market.
Warren Buffett is heavily invested in stocks such as American Express (AXP) and IBM and has been for a long time, not exactly a template for success in the market. I am not certain I would watch what he is buying and selling. He makes his fortune by using his enormous wealth and cash reserves to do creative deals at favorable terms, not through his astute stock selections.
@DlphcOracl: I invested with Warren Buffett a quite awhile. Often the reasons for the new positions are quite insightful. What differentiates him from many of us is that he tends to have very, very long investment horizon, sometimes in decades. Also he tends to buy the entire company, if not significant stake of the company. As I recalled he side-steped the entire tech sector during the internet bubble for not understand the stocks. Guess who has the last laugh when average investors were so willing to bid up the tech stocks at ever higher prices, and the bubble popped. On the other hand as you pointed out, some of his stock picks including IBM and others have not quite panned out. Casual search found that he started to pick up Phillip 66. Timing may be a bit early, but certainly oil stock prices are depressed and crude price has dipped below $30. Given the global situation, my opinion is that it will go even lower.
Oh,finally the argument has changed eh? Now we are only supposed to DcA in falling markets. I have a dream. That someday we will hear don't DCA in rising market. Don't reinvest distributions. I have a drew today. By the way this is same as when to buy vs what to buy in large spades.
That depends on whether you think this is an ordinary correction in a secular and continuing bull market or the beginning of the next bear market. Dollar-cost averaging is NOT good in the early and middle stages of a bear market.
say that again. I wish someone had the previous time the argument was made and I listened. All that happens is you end up selling later but with higher losses. Your average loss is low which is what is used by financial pundits who work based of percentages, with little regard to individual situations.
I fret about selling something early one day, and maybe occasionally. I fret about not selling early every day. When vs what is not market timing. It is about probabilities.
This, for me is a long term buy stratey that I have used, at times during market declines, to round out and build positions within my portfolio. I have recently been buying in my global equity sleeve by adding to (DEQAX) thus raising its weighting within the sleeve against the other two funds held (CWGIX) & (EADIX).
Comments
That depends on whether you think this is an ordinary correction in a secular and continuing bull market or the beginning of the next bear market. Dollar-cost averaging is NOT good in the early and middle stages of a bear market.
Warren Buffett is heavily invested in stocks such as American Express (AXP) and IBM and has been for a long time, not exactly a template for success in the market. I am not certain I would watch what he is buying and selling. He makes his fortune by using his enormous wealth and cash reserves to do creative deals at favorable terms, not through his astute stock selections.
By the way this is same as when to buy vs what to buy in large spades.
I fret about selling something early one day, and maybe occasionally. I fret about not selling early every day. When vs what is not market timing. It is about probabilities.