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.
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