Monday, August 10, 2009

Investing: So 1980's



So The average holding period for a stock on the NYSE is now at under 6 months. I still don't understand why people actually believe or pay attention to fundamental analysis, PV of future cash flows, or any balance sheet, income statement, or CF statement. These things matter for longer holding periods (measured in years). So your Mutual fund or financial advisor who claims to be an investor, is lying to you. He is merely a speculator or a trader. Short term holdings are for those people trying to guess what everyone else is doing, speculating on the madness of crowds. So stop kidding yourself financial advisors, you haven't been investing since the 80's.

No comments: