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Old Dec 12th, 2011, 12:47 AM   #1
alphav6O3q
 
 
Join Date: Aug 2011
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http://www.morningstar.es/es/news/ar...&categoryid=13

Its actually surprising that my thoughts exactly matched what Bogle thought about the current investing climate. I have been thinking about this for a long time...what do you think?
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Old Dec 12th, 2011, 01:21 AM   #2
Random.Capital
 
 
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As far as markets go, investing is the same as speculating. Only difference is hold time.
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Old Dec 12th, 2011, 01:49 AM   #3
alphav6O3q
 
 
Join Date: Aug 2011
Posts: 44
Well I agree investing has some degree of speculation.

However investing consists primarily of finding instruments with good fundamentals (not just price and volume).

Most trading these days are primarily based on frontrunning investors(mutual funds, some hedgefunds, individual investors, institutional investors). This is not something that is sustainable. If it continues for long, no investors will be left. The wall street system in my opinion was created to efficiently transfer wealth to where its best utilized, and reward those to try to do so.

The current environment doesnt reward those who try to invest, but rather rewards the frontrunners.

In my opinion the huge increase in trading vs investing over the past couple of decades, maybe partially responsible for the decline in the US economy.
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Old Dec 12th, 2011, 04:55 AM   #4
tortoise
 
 
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Quote:
Quote from alphav6O3q:



In my opinion the huge increase in trading vs investing over the past couple of decades, maybe partially responsible for the decline in the US economy.


The decline of the US economy is due to many factors-- cultural, economic, political. Among them, the rise of trading is insignificant.

Excellent article in today's Financial Times on the subject of decline:


http://www.ft.com/intl/cms/s/0/6327a...#axzz1gJV9vBmw
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Old Dec 17th, 2011, 07:45 PM   #5
alphav6O3q
 
 
Join Date: Aug 2011
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Dont you think that if more people focused on trading based on fundamentals rather than technicals, the basis for the current crisis would have been discovered much before it actually progressed to the current status.

Probably the debt crisis and the various other preceding crisis would never have happened or atleast their magnitude would have been much less.

Trading purely based on technicals only increases volatility. It doesnt make price more informative.

While I know a lot of people here trade purely on technicals..in my opinion..thats just legalized theft. I define theft as when there is exchange of money without exchange of value.
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Old Dec 17th, 2011, 07:47 PM   #6
newwurldmn
 
 
Join Date: Apr 2011
Posts: 3,421
Quote:
Quote from alphav6O3q:

Dont you think that if more people focused on trading based on fundamentals rather than technicals, the basis for the current crisis would have been discovered much before it actually progressed to the current status.

Probably the debt crisis and the various other preceding crisis would never have happened or atleast their magnitude would have been much less.

Trading purely based on technicals only increases volatility. It doesnt make price more informative.

While I know a lot of people here trade purely on technicals..in my opinion..thats just legalized theft. I define theft as when there is exchange of money without exchange of value.
A mutual fund's average hold time for a stock is 2.7 months, less than 1 quarter. Whose policing the boardrooms?
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