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Tuesday, 2 July 2013

Is it true Long term investing is dead?

Link to full report :- Long-Term Investing Is Dead; Check the S&P Chart

If you didn't already guess it, then you know that long-term investing is dead. It's so dead that it actually stinks. The idea should be consigned to the dustbin of history and replaced with more of an up-to-date thinking. It's part of the core belief that influences the way we look at market outlooks over the next six months. ......

..... Forget individual stock picking because that's a waste of time ....After years there may be an opportunity to profit from buy and hold with the S&P - but only if you can break a 15-year habit and sell to lock in a profit. ......  



Link to full report :- When Long-Term Investing Fails

It has been close to six years since the start of the Great Financial Crisis of 2007-2009, during which the Straits Times Index (SGX: ^STI) bottomed on March 2009 at 1,456 points. Since then, it has climbed by 114% to 3,118 on 27 June 2013, representing a great return for investors who had the foresight to invest in the STI through an index tracker like the SPDR STI ETF (SGX: ES3) at the market-bottom.

But, for those who had invested at the index’s pre-crisis peak of 3,875 on 11 October 2007, they’re still waiting to break even after almost five and a half years. To those investors, they’ll likely argue that long-term investing has failed them. ......

. ......Long-term investing is likely to fail when investors are indiscriminate about the relationship between a business’s underlying fundamentals and future expectations. But then again, those traits make for a poor investing experience anyway, regardless of a person’s time horizon.  OUCH!


Link to full report :-  Time is on your side

.......  You're trying to fund your retirement over the next 20 years. Hedge fund managers have to woo their clients every month. You're saving for your kids' education next decade. Fund managers have to fret about the next quarter. You can look years down the road. Traders have to worry about the next 10 milliseconds.

Most professional investors can't focus on the long run even if they want to. As well-known former tech analyst Henry Blodget put it: “If you talk to a lot of investment managers, the practical reality is they're thinking about the next week, possibly the next month or quarter. There isn't a time horizon; it's how are you doing now, relative to your competitors. You really only have 90 days to be right, and if you're wrong within 90 days, your clients begin to fire you.”

I'm a long-term investor. I'm not going to fire myself because of a bad quarter. The fact that you and I don't have to play these insane short-term games is the last remaining edge we have over the pros. And frankly, it's enormous.

The biggest risk investors face is losing money between now and whenever they'll need it (retirement, school, etc.). The good news for you – and bad news for Wall Street – is that the odds of losing money drops precipitously the longer you're invested for.  ......


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