Market Strategies

[lentinman]

LOUSY PREDICTION! PART 5:

I have no regrets. I rode the train from late 2002 (absolute lows) until halfway through 2005. The VAST majority of the low hanging fruit had been picked by that time. Any VMC’er realizes the massive difference between the number of microcaps that had earnings, cash, no debt, great growth a ludicrously low prices in 2003 and even 2004 compared to 2006.

In all probability, the small cap phenomenon has ended. As economies slow down, money first gravitates to large cap stocks and then, finally, to other markets. Declining small cap stocks are the first shot across the bow of almost all cyclical bull markets. The reason is simple. Small caps get the cream that is skimmed from an overly exuberant economy. The first thing to be eliminated is that exuberance.

Therefore, I may have missed additional profits in the past year from microcaps, but I will not be the one to lose what I have made. No chance.

If I have to wait 1 year or 100 years until the next major market low, I will wait.

Len