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Somehow I think we overcomplicate stock market analysis. I live by the rule what goes up must come down. Eventually the market is going to crash. I absolutely g
by junto 13y ago
Somehow I think we overcomplicate stock market analysis. I live by the rule what goes up must come down. Eventually the market is going to crash. I absolutely guarantee that fact. I think it is a fairly well proven fact that economies cycle. It is just a matter of time before it crashes again. Are we in a bubble? The honest answer is that it doesn't matter.
All you need to know is that in 2008 the stock market crashed. More than likely within the next few years, before 2015 is out (~7 years later), all the investors who will the increasingly expect a crash, will get one. Oddly enough, I think that human greed, expectation and fears of loss drive the cycle.
All it needs is a trigger to start the mass sell off. Then Facebook shares won't be worth diddly squat. That's when you buy again.
A tiny minority of investors can read the signs of impending doom. Lucky investors, including some Wall Street traders get lucky and sell before the crash. The vast majority of investors miss the boat and lose out big time.
The trick is knowing when to buy and when to sell. I think the whole thing is smoke and mirrors. 99% of it is probably luck.
http://www.forbes.com/sites/kenrapoza/2012/05/25/buy-when-theres-blood-in-the-streets-how-contrarians-get-it-right/ http://www.forbes.com/sites/kenrapoza/2012/05/25/buy-when-th...
- scep12 13y ago>I live by the rule what goes up must come down. In the long term, the stock market trends upwards. In other words, what goes down, almost definitely will go back up again. The ups-and-downs of the short and medium term are can be mostly ignored by those who aren't day trading. > The trick is knowing when to buy and when to sell. A bit understated, don't you think? Finding a peak is hard enough, when you're in it -- many were crying 'bubble' and moving out of their positions at the beginning of 2013... what suckers they are! And having the courage to pour your money into a fear-driven market when you've determined it's in a valley is even more difficult - if it wasn't, everyone would be doing it. Smart investors don't try to time the market. They put their savings in carefully, consistently, and sometimes buy what's on sale.