Sorry!! The article you are trying to read is not available now.
Thank you very much;
you're only a step away from
downloading your reports.

Five Things You Need to Know: The Debt Crisis Is Not a Final Destination

By

The debt crisis is not an end in and of itself, but rather is something to pass through. And no one knows what will emerge from the other side.

PrintPRINT
3. Did Buy-and-Hold Die?

So much financial commentary today is targeted toward explaining why everyone at the Federal Reserve is an idiot, how everyone at Goldman Sachs is a thief, and in general favors punditry over analysis. But in the course of doing some separate research this morning I stumbled across a handful of voices in the wilderness who offered some timely advice in May 2009.

You won't find this article easily in searches for "Death of Buy-and-Hold" because it apparently wasn't search optimized. It's from Morningstar. That alone will guarantee many people won't click on the link. (Here, I will save you from having to do this yourself. "Kevin -- Thanks for the link but don't you know Morningstar is more or less just a credit ratings agency for the mutual fund industry? Thanks, but no thanks.") Anyway, this was a nice summary from Chris Davis, a portfolio manager for Davis Funds, at one of the most pessimistic times in market history in my lifetime.

"[T]he last thing I would say is that the chorus that cries out that buy and hold is dead will reach its crescendo at exactly the time that buy and hold should work going forward. In other words, when it looks worst in the rear view mirror is when it will be best in prospect."




Along these lines, there is much speculation today that the individual investor is dead. The consensus view is that individuals are out of the market, which is largely true, mostly because the game is rigged, not true but conventional wisdom, and that the notion itself of buying individual stocks and even investing itself quaint and old fashioned. Fair enough. But there are advantages individual investors are going to enjoy over the next decade that hedge funds and professionals cannot, among them the ability to withstand drawdowns in markets due to liquidity shocks that leveraged traders cannot. Everything eventually cycles in and out of favor. Everything. If I were to write a piece today and file it away to be published on June 27, 2021, I would headline it: The Return of the Individual Investor. Ten years from now it will be relevant.

Follow Kevin Depew on Twitter @kevindepew


4. Payday Is Killing you

I realize this does not quite qualify as "good" news for the many people in America unemployed, but it's noteworthy. People are more likely to die on or shortly after the day they're paid, according to a new study.




5. Interesting Counting and Data Widgets From OilPrice.com

Found this widget over at the OilPrice.com folks. It provides an interesting visual of just how dependent on fossil fuels we really are.


Follow Kevin Depew on Twitter @kevindepew

No positions in stocks mentioned.

The information on this website solely reflects the analysis of or opinion about the performance of securities and financial markets by the writers whose articles appear on the site. The views expressed by the writers are not necessarily the views of Minyanville Media, Inc. or members of its management. Nothing contained on the website is intended to constitute a recommendation or advice addressed to an individual investor or category of investors to purchase, sell or hold any security, or to take any action with respect to the prospective movement of the securities markets or to solicit the purchase or sale of any security. Any investment decisions must be made by the reader either individually or in consultation with his or her investment professional. Minyanville writers and staff may trade or hold positions in securities that are discussed in articles appearing on the website. Writers of articles are required to disclose whether they have a position in any stock or fund discussed in an article, but are not permitted to disclose the size or direction of the position. Nothing on this website is intended to solicit business of any kind for a writer's business or fund. Minyanville management and staff as well as contributing writers will not respond to emails or other communications requesting investment advice.

Copyright 2011 Minyanville Media, Inc. All Rights Reserved.

PrintPRINT
 
Featured Videos

WHAT'S POPULAR IN THE VILLE