Worthwhile discussion this week on Bloomberg Surveillance between Jim Bianco, president of Bianco Research LLC and Barry Ritholtz, CEO and director of equity research at Fusion IQ talking about the need for capital preservation as the main objective during secular bear markets. Gains should be respected and collected as golden gifts, and losses should be shunned as the plague.
The key is to have a method for carefully picking entry and exit points. No method is going to be perfect timing. But having rules about how, when and what risk we are willing to expose our capital to is crucial to the goal of survive and thrive these times. As my high school science teacher used to say: “stand for something or you'll fall for anything.”
Cory’s Chart Corner
“An explosive critique about the investment industry: provocative and well worth reading.”
“Juggling Dynamite, #1 pick for best new books about money and markets.”
“Park manages to not only explain finances well for the average person, she also manages to entertain and educate, while cutting through the clutter of information she knows every investor faces.”