Articles So Convincing yet so wrong
We have to be careful in what we read from the web.
Below are articles that were published in the web that are so convincing, so bearish and yet so WRONG.
We have to discern which views are right and wrong.
Article said "Sell all your bonds":
https://www.caseyresearch.com/articles/doug-casey-sell-all-your-bonds
My view:
=> Bonds are essential asset class in portfolio allocation. Bonds help to generate income and get back principal at maturity (if no default). No other asset class (except structured notes) allows you to get back principal at maturity.
=> If you do not hold bonds in your portfolio, you will overweight equities which will be subject to market volatility OR you will overweight cash which is paying you almost nothing.
Article says "Why Alibaba could drop 50%":
https://www.google.com.sg/amp/www.barrons.com/amp/articles/alibaba-why-it-could-fall-50-further-1442036618
My view:
Alibaba is much higher today.
Article said "Perfect storm for equities":
https://finance.yahoo.com/video/potential-perfect-storm-september-210800162.html
My view:
=> Investors who follow this bearish call will be holding onto cash since September last year and missing out all the bull market uptrend.
Article "RBS said sell everything":
www.telegraph.co.uk/business/2016/02/11/rbs-cries-sell-everything-as-deflationary-crisis-nears/
My view:
=> Such report creates headline news and creates a lot of attention.
=> This article had caused several investors to panic and even cut loss on their existing equity positions in early 2016. Those positions would have resulted in profit now if they had not been sold.
Article said "Analysts expect equities sell off if Trump wins":
https://www.google.com.sg/amp/www.cnbc.com/amp/2016/11/02/this-is-what-could-happen-to-the-stock-market-if-donald-trump-wins.html
My view:
=> Long term direction of a stock depends on the long term earnings trend of a stock.
=> Long term earnings trend of a stock depends on the competitive advantage of the company and quality of the management.
=> NOT dependence on who is the next president of the country.
Below are articles that were published in the web that are so convincing, so bearish and yet so WRONG.
We have to discern which views are right and wrong.
Article said "Sell all your bonds":
https://www.caseyresearch.com/articles/doug-casey-sell-all-your-bonds
My view:
=> Bonds are essential asset class in portfolio allocation. Bonds help to generate income and get back principal at maturity (if no default). No other asset class (except structured notes) allows you to get back principal at maturity.
=> If you do not hold bonds in your portfolio, you will overweight equities which will be subject to market volatility OR you will overweight cash which is paying you almost nothing.
Article says "Why Alibaba could drop 50%":
https://www.google.com.sg/amp/www.barrons.com/amp/articles/alibaba-why-it-could-fall-50-further-1442036618
My view:
Alibaba is much higher today.
Article said "Perfect storm for equities":
https://finance.yahoo.com/video/potential-perfect-storm-september-210800162.html
My view:
=> Investors who follow this bearish call will be holding onto cash since September last year and missing out all the bull market uptrend.
Article "RBS said sell everything":
www.telegraph.co.uk/business/2016/02/11/rbs-cries-sell-everything-as-deflationary-crisis-nears/
My view:
=> Such report creates headline news and creates a lot of attention.
=> This article had caused several investors to panic and even cut loss on their existing equity positions in early 2016. Those positions would have resulted in profit now if they had not been sold.
Article said "Analysts expect equities sell off if Trump wins":
https://www.google.com.sg/amp/www.cnbc.com/amp/2016/11/02/this-is-what-could-happen-to-the-stock-market-if-donald-trump-wins.html
My view:
=> Long term direction of a stock depends on the long term earnings trend of a stock.
=> Long term earnings trend of a stock depends on the competitive advantage of the company and quality of the management.
=> NOT dependence on who is the next president of the country.
Comments
Post a Comment