Monday, July 1, 2013

JUST OUR OPINION

There's an old saw about the more attractive the reward, the more reluctant people are to go after it.

The rule certainly applies to beautiful women. Most guys are too shy or intimidated to approach them. But the same rule applies to investing.

Following a big sell-off like the one that happen recently when Bernanke spooked the markets, many equities and bonds suddenly became more attractive while gobs of investors instead of buying headed for the nearest exit.

To be sure, there's some risk here, just as there can be in approaching a beautiful lady. So it raises the age-old, classic question: does the reward outweigh the risk?  The answer is really quite simple. You have to learn to decide.

If you're afraid to approach beautiful ladies, spare yourself the angst of going around claiming you really want one because under those conditions your chances are at best remote.  And the same pretty much holds true for making serious money in the market.

Some time soon we'll talk about another old saw: never let an opinion get in the way of making money.

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