If you haven’t read this, do so now:
http://ibankcoin.com/flyblog/2014/01/05/sometimes-the-less-you-know-the-more-you-make/
An excerpt:
Last year was orderly, with large capped stocks leading the way. The buy and hold strategy held true and old men made a bundle of coin in their stupid toilet paper stocks. I believe 2014 is going to imbue a different quality in the investing public, something far more debauched than 2013. If last week was a preview of things to come, expect to see speculation run rampant in small cap, low brow, stocks, whilst the mainstream of Wall Street lags behind and gets flogged with wet towels upon correction.
For people who pride themselves on stock picking prowess, this is a welcomed development. I don’t like it when my dentist makes bundles of coin in his stupid 401k plan, managed by mutual fund hacks. I’d much rather see him destroyed, unable to deal with the market, cashed out and looking for real estate. This doesn’t make me an evil man, of course, only one that is interested in seeing the complete destruction of my dentist’s retirement account. – Fly
In my 2013 Outlook in January last year, I made the comment that 2013 would be the year of the stock. This year, one of my predictions is of the same viewpoint that Dr. Fly suggests, and that is that 2014 will be the year of the stock picker.
Fewer stocks will participate in the market this year, which means that the stocks that actually move, will move in short frantic bursts. If you look at each trading day of the year thus far, we’ve been positioned into stocks making frantic upside moves (YY, YOKU, VMW, CREE, WDAY, SSYS, SCTY, ANGI). The moves will be more explosive than they were last year. I also think what you’ve seen here will be the norm for the year. In other words, if your expertise is picking stocks and timing explosive movements in stocks, then you sir are in for a real treat.
Don’t trade the market. Trade stocks.
OA
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