by Bryce

We have recently witnessed the steepest rally since the Great Depression. The market averages are up in excess of 25% in a month and continue to behave well under less than favorable news. While this is great from an investment perspective, I would just like to point out a few facts/opinions as it is easy to be caught up in all the recent optimism when in actuality things haven’t improved much. The facts below were provided by The Economist, April 11-17th 2009 edition.  (more…)

by Keith

Today we witnessed the continuation of a recent bullish trend in the market. After a fuss over executive compensation, the markets witnessed a nice gain to begin the week. While today, and most likely over the next few weeks, offers opportunities to accrue nice gains, we must be cautious. The obvious questions at the moment are: have we seen if there finally going to be a sustained rally? and have we seen capitulation? Personally I think the answer is no to both, but it is hard to say in these times. The changes in the housing figures released recently make one want to believe things could last, but as always we must be careful. In light of this, I think it is time to remember the importance of separating trades from investments. In bear markets (as with any other market) we have to set metrics for ourselves about what to buy, and when to sell it. One would have done well to view things as trades, and only trades. Making purchases only for the short period of time to time the ebb and flow of this bear market was certainly easier to handle than trying to buy up long term holdings after the first few lows. As this rally continues one must question what to sell and what to hold to test the life of this rally. I would suggest the simple question of whether your holdings are investments or trades, because it is much easier to swallow pulling the trigger too early on trades since we see questionable long-term value to them. While your investments will stir draw your ire should you miss out on a sell, if it is a true investment you will not be upset in the long run. All of this should not be new to anyone, but in this market it does not hurt revisiting your basics.