Wednesday, October 29, 2008
We've not revisited this "Lucky 13". They've only suffered a 26% decline through the close of yesterday--helped immensely by ROH's takeover bid! Click on the label to find the series of posts for this group.
The lesson: Gimmicky but catchy investment strategies all get washed up on the same beach when the liquidity tide heads out quickly.
I think for the average investor, they get so caught up in all the tricks, tips and tools of the trade, that they forget that the economic backdrop and the overall place in the cycle go a long way toward increasing your probabilities of having a successful outcome on a position taken.
I say that with this hard-won knowledge: It's hard to get folks to agree on where we are in any cycle. If you've been following economic commentary, it's only been within the last three months that we have the majority of folks agreeing that we are going into a recession.
Which reminds me.....Brian Westbury, who thought everyone was full of patooky who were dour on the economy is not being trotted out very much.