xyin
[参加活动2]一篇值得推荐的文章
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6
2006-05-29 03:34:00
http://articles.moneycentral.msn.com/Investing/JubaksJournal/ShorttermFearLongtermProfit.aspx
just came back from a short vacation, catching up with readings now. came across this article, personally thought it worth reading. so hope someone else can learn something as I did.
enjoy.
normally i think it is a dangerous thing to summarize an article because then you lost the context, and you would not understand the rationale behind it. here it is, if you are intrigued, i would still recommend to read the whole article. I like to read articles from all sorts of sources especially sources which i do not completely agree. I found that is the best way to learn.
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Turn short-term fear into long-term profit
But, like everything else in the financial markets, fear moves in cycles, which makes this a good time to remind yourself that fear is a short-term phenomenon. It has very little, if anything, to do with the long-term value of a stock or other investment. Fear doesn't change fundamentals, even if it can powerfully shift how much we're willing to pay for those fundamentals. It is so dangerous to investors because it can make them forget long-term economic and market trends and abandon long-term winners at temporary bottoms.
....
I don't think we're headed to anything like a replay of the bust of 2000. Stock market valuations aren't nearly as stretched, future economic growth looks far better and market liquidity is relatively supportive. Instead, we're headed back to normal times when stock markets and stock prices fluctuate with something like their average volatility. Given the recent abnormally low level of volatility, a return to normal is going to hit some investors hard. Abnormally low levels of volatility have led some professional investors to load up on debt in order to pursue risky investments.
...
What are these five trends?
The developing world is growing richer
Demand for commodities will continue to exceed supply
We've seen the low in the inflation cycle
Companies will invest in technology
The dollar will continue to slide
[此贴子已经被icyscorpio于2006-5-30 12:09:11编辑过]
normally i think it is a dangerous thing to summarize an article because then you lost the context, and you would not understand the rationale behind it. here it is, if you are intrigued, i would still recommend to read the whole article. I like to read articles from all sorts of sources especially sources which i do not completely agree. I found that is the best way to learn.
-------------------------------------------------------
Turn short-term fear into long-term profit
But, like everything else in the financial markets, fear moves in cycles, which makes this a good time to remind yourself that fear is a short-term phenomenon. It has very little, if anything, to do with the long-term value of a stock or other investment. Fear doesn't change fundamentals, even if it can powerfully shift how much we're willing to pay for those fundamentals. It is so dangerous to investors because it can make them forget long-term economic and market trends and abandon long-term winners at temporary bottoms.
....
I don't think we're headed to anything like a replay of the bust of 2000. Stock market valuations aren't nearly as stretched, future economic growth looks far better and market liquidity is relatively supportive. Instead, we're headed back to normal times when stock markets and stock prices fluctuate with something like their average volatility. Given the recent abnormally low level of volatility, a return to normal is going to hit some investors hard. Abnormally low levels of volatility have led some professional investors to load up on debt in order to pursue risky investments.
...
What are these five trends?
The developing world is growing richer
Demand for commodities will continue to exceed supply
We've seen the low in the inflation cycle
Companies will invest in technology
The dollar will continue to slide
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[此贴子已经被作者于2006-5-29 14:39:34编辑过]
After today's market close, i recommend you to read this article!
No fear, no greed.
到底了
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