My boss at RealMoney has a post up essentially saying that, after further review, the commodity and energy theme may not be dead after all. I'm not sure if he has been bearish on these stocks lately or not.
The point here is not to question the quality of anyone's calls on anything. It is important to realize the context of anyone that you read. Jim's calls on stocks tend to be short term. A two week call on XYZ Corp is probably not something that everyone needs act on.
It is crucial for your portfolio that you understand what type of investor you are and what type of investor you are reading.
My typical client does not need to game the Broadcom quarter, for example.
Wikinvest Wire
7 comments:
If he's a weekly or a monthly trader that would make sense; to a yearly or multi-year trader it's just another dip in a 6-year uptrend that still seems strong. Of course that doesn't prevent a multi-year player from occasionally using shorter-term signals to take a profit in order to leverage into more shares later during a dip (there's an opportunity cost if you're wrong of course).
RW
I remember in the 80's...the food stocks just went up and up and up. They went up and did well for 15 yrs. You could buy KO and GIS and sit back.
Double your money yearly. The natural resourses and "hard asset" companies
could, I said could, be in that type of move. If we knew for sure, we would be posting "ship to shore". Ha.
g
I remember the run up in food staples too but missed a lot of it as I recall. Don't know if the hard assets will emulate that kind of move although I think they might and have increased upper allocation limit accordingly; I've also raised my stops. Capital gains give some comfort but OTOH I never could really understand an attitude like, "it's only a loss on paper" - loss of capital is loss of capital.
RW
RW,
I might expand GIS and KO to include most big-ish cap consumer stocks
Large consumer issues sounds about right. I wasn't paying close attention to either my investments or investing strategy until the '87 crash slapped me awake. I've gotten much better about doing my homework since but couldn't tell anyone very much about financial assets I owned before then. I believe at one point I may have even thought a share of stock was actually a real piece of a company, lord help me; thank goodness I also owned real estate.
RW
Re what George said about buying KO and just sitting back....at some point pre 1977, I read a column by Andrew Tobias in Esquire magazine about stocks etc. In this column he said that he had had a dream about buying Columbia Pictures.....Weird, I thought as I bought 200 shares (for no other reason). That 200 shares after many changes of name eventually turned into lots of KO....I still have 2000 shares of it, after selling some along the way. Ain't it a wonderful country!
great story about columbia pictures common.
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