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September 21, 2010


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Ah yes, got to love the buy and hold strategy the article implies...don't look at trends...don't look at the market...close your eyes and hope. That should be the title of the article.
I also find it interesting the author does not include the banner 2008 stock year in his calculations. If you notice the calculated percentages are from 1984 to 2008 but not including.

Great list. These three are definitely mistakes and tough to avoid for a lot of folks. Can't wait to read the rest.

It's amazing that there seems to be three main groups of investors:

1. People who know very little and keep investing simple (investing over time, dollar cost averaging - mostly w/ 401ks and other retirement accounts).

2. People who know just enough to overthink things and get themselves into trouble by overcomplicating investing.


3. People who know a lot. Most of those people will come back to keeping investing simple because it's proven to be the best route to success and reduces their time commitment and stress level.

Let's all get to #3 soon!

Unfortunately Max Haley's experience is that of millions of investors. Many were told they are in charge of their own investments and given no instruction on how to manage it. Thus, they were easy pickings for stock brokers and insurance salesman. The stock brokers and insurance salesman did well the clients didn't. Wait until the baby boomers really hit and the diaster that the country faces will be realized.

LOL, here we go again.

Why does every anti-timer argument immediately go to the horrible logic of the X best days argument. This is a cherry picking rear view mirror fantasy argument?

The sad thing is there are good arguments but once someone uses this one they have decided to use a trick and not engage in the real debate. I guess if they can trick most people with it maybe that's all they care about. As Al Gore has been caught admitting, it's ok to stretch the truth because if the problem is serious enough, you might have to scare people into ignoring the some facts that might keep them from seeing the real "truth"

This book was published August 1, 2010. To leave the past two years out of his analysis of the market's performance is misleading at best. Although I tend to subscribe to many of the benefits of buy and hold (and do some trading with a small portfolio), this ommission of data renders the whole book irrelevant.

Yeah, market timing ain't usually such a hot idea. BUT those who
rail against it always talk about missing the 40 (or 50 or 20 or
100) best days of performance. Well, even an amateur market timer isn't
likely to miss the 40 best days without missing some of the worst days,
too, folks! (although someone who took ALL their money out of the market
in the dark days of early 2009, when Jim Cramer was warning of Dow 4000
and worse, probably came close)

In the piece FMF states "balanced stock and bond mutual fund". Can someone please give me an example of such a fund or what phrase should I research on?


Pierre --

Actually, this is not from me. It's a book excerpt (written by another author.)

As for your question, I put "balanced stock and bond mutual fund" into Google and came up with this page:

It offers a pretty good summary IMO.


Sorry about that. Thanks for the info. I have bookmarked that page and will study it a bit better tonight at home.

Thanks again.

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