Preserving Capital

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Reader Ray submitted an article by Barrons’ titled “Capital Idea: Preserve It:” THIS YEAR MARKS SEVENTIETH ANNIVERSARY of the apotheosis of the Golden Age of Hollywood with the release of both Gone With the Wind and The Wizard of Oz in 1939. But the period isn’t recalled as a golden era for the stock market. The 1938-42 span might be …

The Latest Bear Market Victim: ‘Buy-and-Hold’

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I did not think I would ever see the day that an article would actually admit that the traditional buy-and-hold approach has lost its relevance. Thanks to reader Nitin for pointing to “The Market’s Latest Victim: Buy-And-Hold Strategy.” As traditional market signposts lose their relevance, so does the traditional “buy-and-hold” strategy that investors have followed for decades. Market pros in …

A Bad Idea

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About a month ago, the beginning of January, a reader contacted me to comment on my Trend Tracking Indexes (TTIs). He liked the idea of following trends, but believed that the potential buy signal back into bullish territory was not happening fast enough. So he designed his own accelerated system, which indicated a move back into equities at that time. …

Questions To Ponder

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MarketWatch featured some interesting “Questions to ponder while awaiting bailout:” We have a new administration in Washington and a new power structure on Wall Street. We’re getting $800 billion in stimulus and $1 trillion more to get rid of bad loans. Yes, good times are right around the corner. Wait for it. We’re going to feel good soon. Until then, …

Sunday Musings: The Case For Bank Nationalization

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The idea of creating a ‘bad bank’ designed to absorb the toxic assets from banks’ balance sheets is gaining momentum. Of course, we all know that the tax payers ultimately will be fronting the money and will be carrying the burden for generations to come. An alternative would be to nationalize all troubled banks. Dr. Housing Bubble presented some interesting …