Saturday, October 4, 2008

OCTOBER MARKET TIMING (BUY, SELL OR HOLD)?

After reading Buffett books in the 90's, I soon came to the realization that there was not one fair value 1960's "Buffett opportunity" to be found in the 1990's. Thanks to Alan Greenspan's easy monetary policy, everything was expensive and an entire generation learned momentum investing. Now, due to this crisis, will real equity opportunities arise over the next few years?

The surprising truth may be that while equities are lower, they are still historically overvalued. Thanks again, Greenspan. This equity bubble is still not popped.

For example, CASH has outperformed STOCK under Bush, see here.

Should you hold CASH or EQUITY NOW? Here is a ten year prediction.

The Market is DOWN, but still NOT fair value. See here and here.

Royal Bank's good predictions and why deleveraging and downturn may be NEEDED to contain inflation. See here.

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