Are You Part Of The Dumb Money?
Jeff Miller | Feb 06, 2013 02:22AM ET
Are you part of the "dumb money?" Here is a last comparison of this type, where I explain why this method is better than the alternatives.
The interest rate alternative investment is pretty lame. Those whose methods ignore the asset allocation alternatives as a method are now screaming that it is all unfair.
The financial risk is very low, the objective indicator for Europe. Any investor following this indicator would have known to ignore the headline risk about Europe.
And most importantly – the recession odds. This was the key problem in 2007. Bob Dieli's indicator had all of his clients on warning. (I wish I had been one of them!) The current story is much different.
Investment Conclusion
Individual investors are fearful at the bottom, slow to spot new trends, and called stupid whenever they climb aboard. There is no objective plan for market timing, and they have all been told that "buy and hold" is wrong.
This is why I recommend the following:
- Use data to adjust your viewpoint – not just absolute price.
- Actively manage your portfolio, looking for the best stocks and themes.
- Revise price targets regularly.
Ignore those who have been completely wrong, and who now call successful investors "dumb money."
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