Quarterly Window Dressing
A Recurrent Wall Street Scam(2)
Why aren ' t the wizards of Wall Street assuaging our nerves by explaining the repeatitive nature of the markets and pointing apparent that similar crises have always preceded the produce of modish all time highs? Right, because the unhappy investor is Wall Street ' s best friend. Why can ' t politicians deal with economic problems with entrepreneurial - economic solutions? Fear, and the terror it evokes, creates an easy market for walruses, oyster knives in hand. Wall Street plays to the operative emotion of the day - - - ravenousness in the produce markets and fear in the others. Once per quarter, they spruce their holdings in ostracized sectors and add to their recent positions in areas that have strengthened. Under current conditions in the traditional investment park, don ' t be surprised by larger than usual cash holdings ( certainly not " Smart Cash " ). Window dressing pushes the prices of your holdings lower, in spite of their continued income production and faraway grade ratings. How have the wizards managed to re - define the long - term investment process as a quarterly horse race lambaste indices and averages that have no relationship to investor goals, objectives, or portfolio convivial? Why do these proponents of long - term investment planning and thinking religiously conspire to make short - expression decisions that quarry upon the emotional weaknesses of their clients? The " art of looking smart " window - dressing enterprise accomplishes several things in correcting markets: The things you own are artificially manipulated lower in price to make you even more uncomfortable with them, while the things you don ' t have positions in put or move higher. The glossies from the inexperienced fund family your advisor is speaking about show no holdings in installment of the current areas of worship. It ' s child's play to make fearful investors change positions and / or strategies. Sic ' em all boys. Brilliant! Value investors ( those who imagine in IGVSI stocks, and income securities with an unbroken cash flow track record ) may lapse matter fearful thinking as wholesome, and this is longitude the Stunt Cash Model comes to the rescue. By focusing on the object of the securities you own, their further loveliness at lower prices becomes unconcealed. Higher yields at lower market valuations and more shares at lower prices ringer faster realized profits as the numbers move too many during the next upward movement of the cycle. That ' s just the real way it is. A reality you can calculate on. Surprisingly few investors have the courage to yield advantage of market corrections. Even more phenomenal is how reluctant the most respected institutional walruses are to persuade buying when prices are low. The present gratification hypothesis of investors combined with the infallibility expected of professionals, by both the media and their employers, is the cause. Gurus are estimated to know what, when, and how much. Consequently, they prefer to mold their portfolios to set up an misstatement of past brilliance, rather than taking the chance that they may absolutely be in the right position a few rooms down the road. There is nobody know in investing. The stock market yard sale is in full unrestraint - - - add to your retirement accounts, buy more of IGVSI stocks at bargain prices, increase your dependable income and increase current yields at the same time. Apply patience, and choose for economic solutions to financial problems.