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« Government Steps Up Efforts To Assist “Stupid” Homeowners | Main | How to Sell Your Home in Any Market? Be Aloof »

April 01, 2008


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lol... I liked the part about Travolta starring in a sci-fi epic... lol

Consider the index fund's nature. It is required to buy new stocks placed into the index. When all similar index funds repeat that process - an overvaluation occurs.

A large number of index stocks accumulate stocks with overvaluation at purchase.

Look at the first two quarters of a stock's price change after joining the DJIA or the S&P 500. That's index fund accumulation.

A systemic accumulation of stocks at too high a price is adverse to profit.

There's an older, contrarian slogan, "The majority is always wrong." When many people exercise the same strategy, stocks are bought high - when everybody else buys. And sold low - when everybody else sells.

That Bogle... such a prankster!

Hilarious - that Buffet & Bogle duo just crack me up...


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