Comments on: The stay-liquid-and-wait strategy http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: Jwhite84 http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-49468 Mon, 17 Mar 2014 11:49:14 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-49468 Staying liquid in the face of rising but overvalued share prices is one of life’s challenges. Investing in small unlisted businesses can often offer healthy returns if you have pre-existing knowledge in the sector and don’t mind getting your hands dirty – wwww.businessforsalefinder.com

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By: TFF http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38217 Mon, 23 Apr 2012 11:52:10 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38217 Talking_Head, good points on that, but market timing is tricky…

I’ll stick with the formula that got me through the 2008 crash cleanly (losses in 2008 evenly balanced by gains in 2009). Quality combined with opportunistic buying.

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By: Talking_Head http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38210 Mon, 23 Apr 2012 02:53:25 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38210 Cash is king period when the market has a profound correction due to systemic problems like we may be facing in Europe. Blue chips got crushed in 2008 as did every other class of U.S. equity. Look at the historical charts. Equity indexes around the globe were crushed in 2008. There was no place to hide…except in cash. I sold all of my equities the Thursday before Bear Sterns announced it was insolvent. I figured Bear was the Canary in the coal mine and if Bear could go under any of the big NYC firms could go under. I sat on the sidelines in cash and watched the bloodbath. I waited until the Dow bounced off the Mark Haynes bottom and went all in at Dow 8,000 then more than tripled my money. Once the Fed pulled the plug on the artificial stimulus that was inflating equities I sold everything and hit the sidelines. I’ve been patiently waiting for the problems in Europe to cause another significant market crash. Cash is the place to be if you really believe Spain, France and Italy have troubles that will cause systemic panic in the financial system. When you look at Italy’s government debt load it’s hard to see a way out for them absent a controlled default similar to that of Greece but wiping out 75% of the capital of Italian Bond holders would rock world markets. You can’t be invested in equities and avoid being crushed in 1,000 point flash crashes and 600 point daily drops. Cash is king when the stock market is about to implode.

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By: y2kurtus http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38209 Mon, 23 Apr 2012 02:11:18 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38209 Felix… “I’m putting all my money into a target-date fund and forgetting about it.”

A man in your position could reasonably expect to have twice the money when he turns 70 if you took an active interest in your investments… think of all the aged grape juice you could buy with the differnce.

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By: michellebfs http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38191 Sun, 22 Apr 2012 07:39:17 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38191 And for those not willing to stay liquid, and willing to invest and start a business now look at business for sale listings on www.businessforsale.com

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By: Chris08 http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38167 Sat, 21 Apr 2012 19:07:55 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38167 Buy big international stocks that are cheap. Tesco for instance would be my choice. PE below 9.

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By: Sunset_Shazz http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38140 Fri, 20 Apr 2012 21:05:18 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38140 Jeremy Grantham’s latest letter is thoughtful and worth reading (agency costs and market inefficiency) but Ben Inker’s two page note at the end is directly applicable to this post: stay liquid and wait is a sensible approach when asset prices are being artificially inflated by central bank policy. As Seth Klarman says, cash is an option on the future.

http://www.gmo.com/websitecontent/JGLett er_ALL_4-12.pdf

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By: revelo http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38128 Fri, 20 Apr 2012 14:47:15 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38128 >I’m not disciplined or rich or sophisticated enough to take my own advice on this

Rich has nothing to do with it, but you probably got the other two adjectives right. There are people who can trade and those who can’t. Someone who avoid European and Japanese stocks now because of the risk of them falling in value is clearly in the latter category of undisciplined dumb money that tends to buy high and sell low. Buying stocks is ALWAYS setting yourself up for a nasty surprise. That’s why the equity risk premium exists. Individual investors, other than those like Buffett who are so rich as to be beyond caring, should always feel worried when they trade hard cash for stocks. In some people, worry is actually a very good barometer of when to buy–buy when you feel fearful, sell when you feel greedy. Buying back in October 2011, for example, made me feel literally sick in my stomach. By contrast, I’m now feeling greedy and not at all worried about buying US stocks, which is precisely why I’m NOT buying US stocks now. I’m very worried about the European stocks I currently own, which is precisely why I’m not selling those stocks now.

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By: stannys http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38119 Fri, 20 Apr 2012 10:42:18 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38119 So a stock market with P/E ratio of 7 — Brazil (BOVESPA) is expensive? Duh.

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By: techer http://blogs.reuters.com/felix-salmon/2012/04/19/the-stay-liquid-and-wait-strategy/comment-page-1/#comment-38117 Fri, 20 Apr 2012 05:39:53 +0000 http://blogs.reuters.com/felix-salmon/?p=13356#comment-38117 Agree with topofeatureAM that you just described standard market timing based on momentum and macro “feelings” that retail investors often try pursue (and usually fail miserably).

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