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: more recently, how about all the "dippies" who bought the dips of CSCO all
: the way down to 15? for ten years buying the dips made you look like a
: genius.
This isn't trading but 'investing'. How can this be considered as trading
when you're limited to one side of the trading equation (buying only, no
selling - and selling as in selling short)?
: now, with a greater than 80% haircut, if you've been buying the
: dips you've been getting margin calls. i talked to a man last night whose
: professional financial advisor put his retirement into professionally-run
: mutual funds that have returned him -55% in the last 12 months. these are
: professionals?
Well for one thing, these fund manaegrs are fundamentalists, force fed
efficient market theories at whatever business schools they went to.
Secondly, they have to abide by their charters (for most of these 'long
only' mutual funds, their charters forbids them to sell short or even to
have a major cash position.). Thirdly, it is the responsibility of the
individual investor to use his common sense/knowledge to pull funds out of
the market if he believes that the market is in an adverse market
conditions. The professional financial advisor is not going to do so since
1) typically, he makes money on the size of assets under management 2) if he
pulls the funds out and the market rebounds, he is going to get a lot of
heat from his clients.
Again, it is the responsibility of the individual for his action(s) or lack
there of. Don't blame others for their own stupidity.
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