keep in mind though that the market fell to within 1-2 percentage points of a bear market. The spooz bottomed at 1270, just 20 points above a bear market. My index at that point fell to just below break even, but rapidly recovered. So that is proof how even in a near bear market the index still decimates the market and nets positive returns.
I am not hating on you. . .but you have a LOT to learn. But you fit in here at ET because the majority of posters are those with the same short-term mentality. As far as actively managing a stock fund (long-only) the best bet is to keep a very long-term perspective if you still have many years before retirement. Methodically buy stocks at periodic junctures in "good" and "bad" markets. Dollar-cost averaging will wash out anomalies with higher or lower buy prices. But pick highly-liquid institutional favorite stocks that are going to grow earnings for years to come - not necessarily every momentum stock that comes along. These "market leaders" do cycle in and out of favor. What ST doesn't understand is that some or most of his picks - once they decline 40% or more during the next downturn, may never return to their former glory. It takes a HUGE gain to overcome that type of loss and many times these are held for years taking a dead money allocation to the portfolio. This is a losing proposition. Now if you can phase in and out of big movers you have to learn when to sell. This is much tougher than when to buy stocks. Best of trades to you, pS
No doubt high momo stocks are liable to fall quite sharply at market turns, but there is no rule that says they fall first and anticipate a turn. In fact my studies show that is certainly not always true, and quite possibly not true at all. Coming into the market turn at the end of last year there were several industry groups that had dramatic declines for several prior months while the ag chems and others sailed off into stratospheric heights. Buying relative strength (combined with whatever other selection criteria deemed appropriate) is one of the oldest tricks in equities trading and can work very well in the right market conditions. Of course holding regardless of market conditions is just stupid.
stock_trd3r knows how stock werk! How is stock_turdler's index doing from inception? Would you have 9 cents on the dollar left based on his sweet system of knowing how 'stocks werk, werd?' The DDM dow ultra 2x ETF back in June of 2007, near its all time high, would have been particularly LOVELY!!!
hey trad3r i think that is some kind of offensive remark that dude is throwin out there....being such a perma bull has its draw backs. hang in there ...not too long though.