Monday, February 27, 2012

"Buy low. Sell high."

Buffoon is NOT a financial wizard, but there's one pretty good rule for investing, stated in title of this post: "Buy low. Sell high."

A few weeks ago the NYT featured bit on Franklin-Templeton fellow who's betting agin' the trend:
A Contrarian Bets Ireland and Hungary Will Rebound
Published: February 7, 2012
For months now, a big investor has been betting billions of dollars that two of Europe’s most wounded countries will bounce back from the beating they have taken during the region’s debt crisis.

But the bets, which center on Irish and Hungarian government bonds, aren’t the work of a hedge fund operating stealthily out of London or Geneva. Instead, the buyer is Franklin Templeton Investments, a mutual funds firm that caters to individual investors rather than to sophisticated institutional customers like pension funds.

The man behind the trades is Michael Hasenstab, who at the relatively young age of 38 has already drawn comparisons to some of the titans of the mutual fund industry, including Bill Gross of Pimco.
Today's news (from Bubble Meter):
Warren Buffett is a housing bull
Warren Buffett says along with equities, single-family homes are a very attractive investment right now.

Appearing live on CNBC's Squawk Box, Buffett tells Becky Quick he'd buy up "millions" of single family homes if it were practical to do so.

If held for a long period of time and purchased at low rates, Buffett says houses are even better than stocks. He advises buyers to take out a 30-year mortgage and refinance if rates go down.
When the Dow is soaring (as it is today), that's really NOT the time to jump into the stock market!

Long, long ago, during a previous "gold bubble", one of my friends invested heavily in gold when it hit its then-peak, around $600/oz. He lost his shirt.

"Buy high, sell low" is a really STUPID investment strategy!

[note: Bubble Meter is on My Blog List, right-hand nav bar.]

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