Wednesday, August 25, 2010

THIS JUST IN...

I saw on the headlines this morning that a Brand New Animal has been added to the Endangered Species list….THE LONG-ONLY MONEY MANAGER. Yep that’s right…the public is fed-up and rightfully so! Just this morning I’ve heard 3 of these Endangered species go on TV and state that the market has no business being down this low, that the economy isn’t really in that bad of shape, yada yada yada. All I hear is excuses, excuses, excuses.

It really is unfortunate, because money-management is a sort of art, it’s a craft that has to be constantly reviewed, tested and is constantly evolving. The only crutch that these endangered LONG-ONLY MONEY MANGERS have is that they prey on the weak and the uninformed. Don’t be one of the uninformed, it’s your moola so ask tough questions, and don’t except the status quo. Afterall, the status quo saw your portfolio DOWN 30% over the past 10 years….DOWN 12% over the last 5 years…and down 6% this year alone! If these LONG-ONLY MONEY MANGERS don’t evolve, they will go the way of the DODO BIRD.  Remember, the DODO BIRD couldn’t fly and nested on the ground, therefore getting eaten along with it’s eggs.  Don’t except that old excuse that “we are in it for the long-term” only to watch your portfolio constantly go in one direction….Down.

 I understand going SHORT in the market to many people is like Un-American and due to pop culture is considered more risky than being LONG.  I 100% disagree and now opened a whole different can of worms that I can't touch on without going on for way too long.  I will touch on this subject another time.  I will simply leave you with the thought that CASH is an Adequate Asset-Class.  Being in Cash this month has saved my portfolio 7.2%....Enough said!


Bye-Bye LONG ONLY MONEY MANAGER

1 comment:

  1. Mike, I like the post today. Is there a place on the site we can ask questions? Can you explain what exactly this Hindenburgh Omen or whatever is all about?

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