Tuesday, February 17, 2009

It's Funny

but I notice that I get more views of my blog when I randomly pick stocks to pick, but I cannot do that all the time, since I am not by a computer all day. But I will say that short term the market is bearish, but I think now is the time to take a step back and STOP trading and look at the big picture.

One has to admit that the market wants to go down and accept the fact it can go down an additional 50%, but that does not mean it is wrong to buy stocks here because it may not go down and in the scheme of things, the long term gains should be tremendous.

The fact is governments are printing money and these situations usually lend themselves to hyperinflation, or at least inflationary pressures. And the only way to protect oneself, and possibly profit from it, is to own physical assets that are fundamental to any society.

Currently, the market is deflating as the projections of the economy get smaller and smaller, but a value investor doesn't buy because of growth and, now, doesn't stand back as prices deflate. It is funny to see growth investors turn around and be short investors using the same logic but on the flipside. The problem with that is called the short squeeze.

Value investors aren't concerned about it because they are enjoying their life, using their minds, and worrying about more important things, like a Hershey bar or Lay's potato chips.

Or maybe that's me.

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