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« Weighing the Week Ahead: Market Correction Coming? | Main | Weighing the Week Ahead: Hope for a Budget Compromise? »

February 05, 2013

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Alex

Buy and hold is not dead at all. I'm up 75%+ since spring 09 in BA, PM, MO, GOOG, and GE. 30%+ in FDX, KO, and SO. I also bought a few thousand shares of a Bakkken oil stock called KOG at 20 Cents. It's not at 20 cents anymore. While holding these core positions, I traded Apple using options

Oscar Wildedog

I think everyone is missing the point here. The paradigm has changed in the markets. Buy and Hold is dead, insofar as the markets have become casinos. So the new paradigm with "black pools," HFT and all the rest of them is that you have to play the markets like casinos. You wouldn't go to Caesar's to play blackjack and just play the hand you were dealt, without adjusting by, say, hitting on 13, 14 or 15 and hope that the dealer, sitting on 12, drew a face card. No, you adjust your bets, fold early on some hands, bet aggressively on others, double down on some, etc.

Learn how to use options. Learn futures, bonds and currencies. Learn how to short. "Dumb money" these days are from entities who are not agile and flexible, who cannot adjust their trades, and so forth. And certainly they are not people who entrust their money to a fund manager or investment banker. Do your homework and your trading on your own. That way, you can make money at Dow 10K, 20K, 5K or 60K. That's the "smart money."

Proteus

Hey Jeff! You promised us a thorough analysis of the Dow 20000 story, we're still waiting :) You wouldn't want the Dow to get there before the analysis, right?

Seriously, I remember the story and you did say you planned an explanation as to why the fundamentals justified what at the time was a considerable leap.

Grey Owl

You rock, Jeff!!!

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