"Gather Ye Rosebuds While Ye May" is a poem by Robert Herrick. This poem portrays our existence on earth, and that people age as life goes on, and everything becomes boundless. Herrick here urges people to take advantage of youth and energy while they may! The poem is in the genre of carpe diem, to seize the day.
Tuesday, January 22, 2008
Stock Market Freefall... Where is the Bottom?
So how about Contrarian Theory? I really am not an expert hehehe but how about that? Invest NOW!!!
Example: Dogs of the Dow is arguably an example of a simple contrarian strategy. When purchasing the stocks in the Dow Jones Industrial Average that have the highest relative dividend yield, an investor is often buying many of the "distressed" companies among those 30 stocks. These "Dogs" have high yields not because dividends were raised, but rather because their share prices fell. The company is experiencing difficulties, or simply is at a low point in their business cycle. By repeatedly buying such stocks, and selling them when they no longer meet the criteria, the "Dogs" investor is systematically buying the least-loved of the Dow 30, and selling them when they become loved again.
During the Dot com bubble an investor would have profited by avoiding the technology stocks that were the subject of most investors' attention. Asset classes such as value stocks and real estate investment trusts were largely ignored by the financial press at the time, despite their historically low valuations, and many mutual funds in those categories lost assets. These investments experienced strong gains amidst the large drops in the overall US stock market when the bubble unwound.
Check this video on youtube.. Embedding it was disabled.
And history repeats itself?