Exploit the Noise

One of the hardest things to do as a long-term value investor is avoid the constant noise from the markets. There has been an excess of noise around Chez Melvin these past few weeks, and at times I find myself tempted to give into the macro weirdness and retreat to a cabin in the woods. The noise level is at its highest levels among traders and investors who have been around for a few decades and are struggling with the changes over that time frame. It seems the shorter the time frame, the worse the noise. Unfortunately, I have a lot of friends who trade short-term instruments and have unrestricted access to telephones.

If you listen to the noise, you really can get scared at times. Sentiment measures are off-the-chart bullish right now, according to some of my associates who track such things. The public seems to be pouring back into the markets via equity mutual fund according to the mutual fund flows. The so called dumb money love stocks and historically that has been a horrible sign for short to intermediate-term market direction....611 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

Read the full story and get access to the Real Money Pro trading floor.

There’s no substitute for a trading floor to get great ideas, so Jim Cramer created a better one at Real Money and blogs there exclusively. We then added legendary hedge fund manager, Doug Kass, with his exclusive Daily Diary and best investing ideas. Staffed with more than 4 dozen investing pros, money managers, journalists and analysts, Real Money Pro gives you a flood of opinions, analysis and actionable trading advice found nowhere else, and allows you to interact directly with each expert.

Already a Subscriber? Please login.

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.