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Old 06-06-2006, 01:46 AM
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Crystallas Crystallas is offline
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Default Prefer the odd market?

I've been reading about a lot of investors the prefer to invest in receeding markets. I knew for a while that some like to do it, but while watching CNBC(allways watch CNBC ) a few analysts mentioned how they prefer this type of market.

Maybe I can't put 2 and 2 together on this one, but whats the catch? Are they saying this because they can buy in cheaper or because its easier to pump small companies? Whats the catch?
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Old 06-06-2006, 06:09 AM
Broken Arrow Broken Arrow is offline
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Default Re: Prefer the odd market?

It could be because the Oracle of Omaha is a contrarian investor. It's also worth noting that perhaps even he has trouble speculating and has dumped all of his silver holdings. Given his track record to consistently out-perform the S&P 500, it's not hard to see why many wouldn't emulate his investing ways.
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Old 06-07-2006, 01:18 AM
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Default Re: Prefer the odd market?

Ive read that editorial before. No doubt has Mr. Buffett been a good example of taking a declining market, and coming out on top. But there is still a lot space that he doesnt cover that beats the street.

I guess having a mentality that you have to breakdown how companies have handled this in the the past, and then speculate for yourself by what you feel will see little negative effect in this type of economy will give you more of a safe haven.
Last time it was security companies and real estate. Which means the rules that worked last time wont work this time.

To prefer the odd market would mean that you like a certain aspect of declines. Maybe its the lack of agressive investors that inflate stock values, or flat out being able to pull out, and buy what normally would be a blue chip at a record low.
I noticed moreso durring these declines than on other occasions, you see the markets hit their lows in the mid-session and rally well in the end of the session. While in a bullish term, the mid-session is rarely ever the lowest.

Anyone HERE prefer trading in this type of market?
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Old 06-07-2006, 04:50 AM
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Default Re: Prefer the odd market?

I'm in for the long term, so yes, I'm very happy with this market. I'd much rather be buying while everyone is irrationally panicked than when everyone is irrationally exuberant.
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Old 06-07-2006, 08:35 AM
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Default Re: Prefer the odd market?

Im okay on my investments, but I never did well on the decline. But I was happy to buy 3 stocks at near record lows that all started to rebound today. I dont think I've figured it out just yet, but I see why its hard to explain how this works. Myself, I cant put this type of investing into words.
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Old 06-16-2006, 12:51 AM
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Default Re: Prefer the odd market?

Im starting to really like this market. I broke about even for the month sofar due to the days of red, but one day picks me up, and Im good. So Im just sticking to old rules, buying them low, and then selling them on the hot days.

The only part that I dont like is the amount of companies that do reverse splits.
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