Joe Weisenthal
The latest quarterly letter from GMO’s Jeremy Grantham is out (.pdf), and as always it’s a must read.
If you’re an investor, especially one inside the industry, it’s especially valuable.
Basically, he talks about one of the main reason that anyone trades: To keep their own careers. And it’s this career preservation that causes the kind of wild herding that causes the market to move like crazy. That’s because in a desperate bid to avoid missing any big moves, investors’ attempts to catch everything exacerbates the moves.
buy low sell high with 19% as your guide