By buying the dips, aren't you predicting that the current underlying trend is going to continue? I mean, you're predicting that the "dip" is over and that we'll continue to go up from there. All trading is about predicting in some form or another. There is no Holy Grail.
I'm using the statistical bias that the underlying longer term-trend has a higher probability of staying in tact than the short term trend. It's not predicting, it's doing what worked historically with p > 0.5.
EWYahoo! Finance Videos A Year of Growth? Updated 1 hours,1 MINUTES AGO Provided byFox Business Now on Yahoo! Finance fox news... i don't know why yahoo finance has a content deal with fox
Inflation and unit labor costs: A phantom menace? "Yet, how likely is that scenario? In fact, while ULCs have historically tracked inflation fairly closely, this relationship has largely broken down over the past decade. The figure plots annual growth rates in ULCs and core inflation (price growth with volatile food and energy prices removed).2 The series roughly track each other; the correlation coefficientâa measure of their association that ranges between -1 and +1âis 0.81 over the whole series, a fairly high correlation. But since 1995, the correlation is -0.06, meaning more recent movements in the series are essentially unrelated." ------- "The empirical evidence couldn't be any more clear." Keeper of a quote.
Bonds sure don't seem to think so convertibility. 10 yr over 5%. one thing that can be said, the bull market in bonds is done. Sooner or later that will make it tougher to close you're eyes and throw a dart, see which s&p 500 component it is and buy the whole friggin company!