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marty_lewis

02/26/02 11:02 AM

#11413 RE: greg s #11411

There's no question a person can make money trading.

The problem is that the media had elevated trading to the level that anyone can do it, and that was part of the problem the last few years.

The historical rate of return for the markets for the last 100 years was something like 12%, the last few was 20%.
That meant there was either a new paradigm (right word?) or the returns had to go back to the norm.. The only way that could happen was for there to be a tremendous deflation in returns. That's what happened. Oh sure there could have been 20 years of 3% retuns, but that was very unlikely.

Most people (probably 95%) need to stay away from trading in any shape and form, erase it from their minds, and stick to fundamental analysis, and just buy solid stocks and hold them.

Timing the market is a fools game, people who have 50-60-70 years experience, billions at their command can't do it, why do people that have 2 years experience, and 10,000 to invest think they can.

Oh well, enough fom me about all this, I originally was just curious as to why anyone would short the market now.