Thursday, December 2, 2010

Patience Grasshoppers

I know many of you are frustrated watching the markets recently.  It becomes very tempting to join the crowd of pump monkeys when you see irrational exuberance in the markets.

Here is an excellent reminder on investing from Howard Marks in a letter he sent out to his Oak Tree clients.  Howard reminds us that managing risk is as important as making returns on investments.  

The government is blowing another huge bubble via stimulus and zero interest rates.  We have seen this game over and over again in the past as Howard describes and it always ends in tears.

Huge hat tip to Zero Hedge for sharing this:

Open and Shut 12_01_10 -


ManHands said...

Jeff - the real question IMO for those of us who spent the last 2-3 years on the sidelines, is where is the re-entry point?

When the dow rose from the 6600 low to 8,000, I thought "its too late to go long now - too much gain has already been built in"

I did the same things at 9,000, 10,000 and now 11,000.

So the question is, when, do I decide to quit looking at how far its risen as a basis to "not get in now".

Frustrating indeed. In alot of ways, just buy the fucking dip you fucking idiot is the best advice I have probably ever heard :)

Jeff said...


Funny you asked that. I am working on a post right now about that very topic.

Stay tuned:)

getyourselfconnected said...

I saw some stuff in regards to Krispy Kreme today (KKD) that make me think the whole thing is the biggest pump and dump ever. No doubt after getting trillions in free money the banls would love to sucker everyone in one more time on stocks. The KKD thing was all I need to see.

Still, I can throw out targets as well as anyone, I say S&P 500 at 1400 by June 2011.