This commentary is advising you to try to outsmart the market and basically day trade on insurance stocks based on the current day’s news buzz.
Let me tell you if you are correct in timing the market it is a great thing. If you do not time it properly it will be a painful bloodletting experience.
Invest for the long term. A better commentary might be invest in undervalued insurance stocks.
Which is more prudent– buying in at $10, selling at $15, buying back at $12, sellign at $17, over and over again (at least until you guess wrong!), or buying in at $10 and investing for the long term.
In short, I feel the market should fundamentally reward INVESTORS over SPECULATORS. Then again, it’s been a whole “new” market and increasingly one which appears increasingly subject to manipulation.
Lemme see, buy value and hold? That doesn’t make for a very exciting article!
There will always be a greater fool out there who sees blips as trends and tries to use them to capture his 15 minutes. And there will always be even greater fools who listen to them.
Right on Matt. Slow, steady, boring is the way to long term stability and value in any financial structure. Personally or corporately. Get rich quick is the exception, not the rule.
But it does make for light & snappy articles in IJ!
If you invest when it is a full moon on a tuesday, we have determined that your investment will go up on average 2% more over a 5 year period, but it depends on which 5 year period you invest in. Make since? if it does then this is a good article. I think this was written by my financial advisor.
some Wall Street Guru read an artical on United Airlines going into bankcupcy and advised all his clients to “get out” and sent UA stock down 45% in one day. Come to find out the artical was 5 years old..This happend about year ago and that was the day I gave up on WALL STREET!!!!
That is who is running Wall Street. Chickens have come home to roost.
What provokes someone to comment on an article that they clearly have not read very closely?
Nowhere in the article does it mention that this is investment advice. Words like “experimental”, “extremely volatile”, and “not for the faint-hearted” do not typically come with financial advice.
My view of the current stock market situation … way back when …when we wanted to buy/sell stock we had to go thru a broker. This broker’s duty was to advise us on what/where/when to invest in a stock. When we got worried due to the headlines…that person would remind us “relax, remember long term, not short term” etc and would prevent us from making knee jerk reactions to headlines.
Now .. we log onto Etrade and do the trading ourselves. Quite often after seeing a sensational headline in the local paper from a reporter who has neglected to check the facts of the situation.
Brian, the problem is those less-than-intelligent people who will perceive this entertainment article as investment advice.
Correction to your comment: the words “extremely volatile” frequently do come with financial advice – usually followed by, “not for the faint-hearted!”
The Dead Horse Theory
Young Chuck in Montana bought a horse from a farmer for $100.
The farmer agreed to deliver the horse the next day.
The next day he drove up and said, “Sorry son, but I have some bad news… the horse died.”
Chuck replied, “Well, then just give me my money back.”
The farmer said, “Can’t do that. I went and spent it already.”
Chuck said, “Ok, then, just bring me the dead horse.”
The farmer asked, “What ya gonna do with him?”
Chuck said, “I’m going to raffle him off.”
The farmer said, “You can’t raffle off a dead horse!”
Chuck said, “Sure I can, Watch me.
I just won’t tell anybody he’s dead.”
A month later, the farmer met up with Chuck and asked, “What happened with that dead horse?”
Chuck said, “I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $998.”
The farmer said, “Didn’t anyone complain?”
Chuck said, “Just the guy who won.
So I gave him his two dollars back.”
Chuck grew up and now works for the government.
He was the one who figured out how to “bail us out.”
Here’s an idea. Instead of gambling on these beat up insurance stocks, why not put your money in gold. The dollar is going to tank and thats a no brainer. When it happens, the smart money will have been in gold earning significant returns while the rest of the market tanks.
And yes, I follow my own advice and have been doing the above for several months with excellent returns
I’m telling you right now. Buy SIGI (Selective) at $13 or whatever they are. My guess is that they’ll be sold in 2 months at about $30 a share. Did you see that one of their bigs just bought 40,000 shares or something like that – at about 18 bucks a share?
Dewey your information on Selective was wrong. It was the Cincinatti guy who bought all of the shares.
— Chairman, Director of Cincinnati Financial Corp. (CINF) John J Jr Schiff bought 44,000 shares on 02/06/2009 at an average price of $22.7. Cincinnati Financial Corp. has a market cap of $3.56 billion; its shares were traded at around $22.7 with a P/E ratio of 8.7 and P/S ratio of 0.84. Cincinnati Financial Corp. is primarily owned by two Gurus. David Dreman owns 97,173 shares as of 12/31/2008, which accounts for 0.04% of the $7.73 billion portfolio of Dreman Value Management. Tom Gayner sold out his holdings in the same quarter; Ruane Cunniff sold out his holdings in the quarter before.
This commentary is advising you to try to outsmart the market and basically day trade on insurance stocks based on the current day’s news buzz.
Let me tell you if you are correct in timing the market it is a great thing. If you do not time it properly it will be a painful bloodletting experience.
Invest for the long term. A better commentary might be invest in undervalued insurance stocks.
Which is more prudent– buying in at $10, selling at $15, buying back at $12, sellign at $17, over and over again (at least until you guess wrong!), or buying in at $10 and investing for the long term.
In short, I feel the market should fundamentally reward INVESTORS over SPECULATORS. Then again, it’s been a whole “new” market and increasingly one which appears increasingly subject to manipulation.
A most see movie ” The Corporation a documentary by filmmakers Mark Achbar and Jennifer ABBOTT AND Auther JOEL BAKAN
Lemme see, buy value and hold? That doesn’t make for a very exciting article!
There will always be a greater fool out there who sees blips as trends and tries to use them to capture his 15 minutes. And there will always be even greater fools who listen to them.
Right on Matt. Slow, steady, boring is the way to long term stability and value in any financial structure. Personally or corporately. Get rich quick is the exception, not the rule.
But it does make for light & snappy articles in IJ!
If you invest when it is a full moon on a tuesday, we have determined that your investment will go up on average 2% more over a 5 year period, but it depends on which 5 year period you invest in. Make since? if it does then this is a good article. I think this was written by my financial advisor.
Invest with me and my new hedge fund, Ponzi capital investments.
some Wall Street Guru read an artical on United Airlines going into bankcupcy and advised all his clients to “get out” and sent UA stock down 45% in one day. Come to find out the artical was 5 years old..This happend about year ago and that was the day I gave up on WALL STREET!!!!
That is who is running Wall Street. Chickens have come home to roost.
What provokes someone to comment on an article that they clearly have not read very closely?
Nowhere in the article does it mention that this is investment advice. Words like “experimental”, “extremely volatile”, and “not for the faint-hearted” do not typically come with financial advice.
This is just one more reason NOT to take investment advice from the media. The people that write these articles majored in Journalism, not Finance…
My view of the current stock market situation … way back when …when we wanted to buy/sell stock we had to go thru a broker. This broker’s duty was to advise us on what/where/when to invest in a stock. When we got worried due to the headlines…that person would remind us “relax, remember long term, not short term” etc and would prevent us from making knee jerk reactions to headlines.
Now .. we log onto Etrade and do the trading ourselves. Quite often after seeing a sensational headline in the local paper from a reporter who has neglected to check the facts of the situation.
Brian, the problem is those less-than-intelligent people who will perceive this entertainment article as investment advice.
Correction to your comment: the words “extremely volatile” frequently do come with financial advice – usually followed by, “not for the faint-hearted!”
The Dead Horse Theory
Young Chuck in Montana bought a horse from a farmer for $100.
The farmer agreed to deliver the horse the next day.
The next day he drove up and said, “Sorry son, but I have some bad news… the horse died.”
Chuck replied, “Well, then just give me my money back.”
The farmer said, “Can’t do that. I went and spent it already.”
Chuck said, “Ok, then, just bring me the dead horse.”
The farmer asked, “What ya gonna do with him?”
Chuck said, “I’m going to raffle him off.”
The farmer said, “You can’t raffle off a dead horse!”
Chuck said, “Sure I can, Watch me.
I just won’t tell anybody he’s dead.”
A month later, the farmer met up with Chuck and asked, “What happened with that dead horse?”
Chuck said, “I raffled him off. I sold 500 tickets at two dollars a piece and made a profit of $998.”
The farmer said, “Didn’t anyone complain?”
Chuck said, “Just the guy who won.
So I gave him his two dollars back.”
Chuck grew up and now works for the government.
He was the one who figured out how to “bail us out.”
Here’s an idea. Instead of gambling on these beat up insurance stocks, why not put your money in gold. The dollar is going to tank and thats a no brainer. When it happens, the smart money will have been in gold earning significant returns while the rest of the market tanks.
And yes, I follow my own advice and have been doing the above for several months with excellent returns
You must ve very young. Have you sold yet? Unless you have, you haven’t made significant returns.
I’m telling you right now. Buy SIGI (Selective) at $13 or whatever they are. My guess is that they’ll be sold in 2 months at about $30 a share. Did you see that one of their bigs just bought 40,000 shares or something like that – at about 18 bucks a share?
Dewey your information on Selective was wrong. It was the Cincinatti guy who bought all of the shares.
— Chairman, Director of Cincinnati Financial Corp. (CINF) John J Jr Schiff bought 44,000 shares on 02/06/2009 at an average price of $22.7. Cincinnati Financial Corp. has a market cap of $3.56 billion; its shares were traded at around $22.7 with a P/E ratio of 8.7 and P/S ratio of 0.84. Cincinnati Financial Corp. is primarily owned by two Gurus. David Dreman owns 97,173 shares as of 12/31/2008, which accounts for 0.04% of the $7.73 billion portfolio of Dreman Value Management. Tom Gayner sold out his holdings in the same quarter; Ruane Cunniff sold out his holdings in the quarter before.