Forum Archive Index - September 2001

["Viewpoint ." <viewpoint_@hotmail.com>]

Hindsight is a wonderful thing but we should all learn from Phaedrus's 
charts.

I hope that everybody has taken notice that the DIJA, RBC, CEN, AIA and GPG 
had all started trending down before the events in NY on September 11  Even 
if those attacks had not occurred I am sure that the DIJA would have 
declined even further to levels that reflected the inevitable recession the 
US was heading into.

This no doubt would have reflected in the performance of NZ shares and the 
likes of RBC would probably have continued their trend down. This trend is 
also shows up in the SGI chart.

It is a good point that Phaedrus raised about the buy and hold investor.

With the S&P500 below the levels it was three years ago the typical US 
investor who bought and held is not any richer than he once was. The returns 
on the NZSE 10 over the last few years have been been pretty meagre as well.

Phaedrus's underlying message is pick your stocks on fundamentals - but 
collect on the way up and don't give the profits back when the price 
declines. Some would call that trading but I call it common sense.

That doesn't mean you need to look at the prices every hour of the day.

The same sort of returns can be made even if stocks are monitored on a 
weekly basis = with the proviso that if exceptional circumstances prevail 
than closer attention is paid to your investments.

Keep the good stories coming Phaedrus - I believe the consistent message you 
are sending is a good one.





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