I’m merely posting the articles. But I do think the writer makes a point, namely contrarian investing. In other words, “buy low, sell high.”
Put in the words of J. Paul Getty, who obviously knew what he was doing when it came to all things money: “Buy when everyone else is selling and hold until everyone else is buying. This is not merely a catchy slogan. It is the very essence of successful investments.”
The ruble has really taken a beating the past few months, and it WILL go back up. Maybe tomorrow, maybe later on.
I don’t do currencies or commodities, but I do invest in equities, and along those lines, last week I picked up some shares of BP awful cheap.
U.A.E. Sees OPEC Output Unchanged Even If Oil Falls to $40
One of the first things I learned, when I first started investing as a contrarian investor in the early 90s, is that there are some companies that really are bad. They have fallen for a reason, and will continue to fall.
The sweet spot is the grade B large cap that can improve its performance if it has to. The excellent companies don’t fall enough to be worthwhile, and the bad companies keep going down as they get into more and more trouble.
These sayings miss the whole point.
The idea is to buy some thing at some price and sell it soon enough --the same thing-- at a higher price soon enough. Knowing the time frame is as important as the % return because earning 19% in one month is the same as doubling your money in four months (re compounding). Knowing oil prices are down --by itself-- means little; we've got to also know how high the price is rising and how long it will take to get there. There are ways of finding this stuff out but it's a lot of work and I haven't seen anyone do it here yet.