So many of us old farts have witnessed so many of these pull backs that we wonder “What’s new?” I’m not saying we know when each one will come to an end, only that we know each one will end. It is only really relevant to be able to weather the storm and not make enough rash bets to be blown out of the game. It is certainly not the case that age inures you from the pain of a pull back, but when you learn not to bet the ranch on any one throw, you can survive from bubble to bubble, from correction to correction.
I see on the forum a fair amount of those who think they will be a hero. I’m not going to say you will never win swinging for the fences, only that most will strike out. It is infinitely easier to be a singles and occasional doubles hitter. The homers will come by accident, and there are no five run homers.
Although there is no one way to successfully invest, this is not a Chinese meal; you will not do well picking a choice from each column. You must learn what each style of investing entails and find the one or two that work for you. And by a style, I don’t mean buying someone’s newsletter and slavishly following it. You have to understand why you are doing what you do.
So when will this correction end? Well, if ten people read this, nine will not be able to name the week ahead of time. Naming it afterwards is a good activity for academics, but not investors. There are some methods that do not require picking the end of corrections to be effective. It might be worth your time to investigate one or more of them. If it is of any interest, I’m back in town and able to watch the market more closely – you did a lousy job this time OF.