Quote:
Originally Posted by XLexusTech
Buy and short on the down... .
all my long term investments are purchased on the down... take Apple.. it hit 398... it may go down further.. but with the buy back plan even with the forecasts hitting 460 its still a buy.. my cost average goes down every time I buy more... so investing.. in down times... its when i look for deals to buy..
Are they taking about institutional investors holding?
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Institutional investors are the market movers... because they trade in extremely large blocks of shares so they set the prices. Mutual funds etc are the big holders.
I don't think anyone is talking about institutions.... they're professionals and know what they're doing (supposedly). It's the "little guy" --- that sells his/her 401K out because the market is soft or is in a down period. Of course that's just exactly the opposite of what they should do. They should have upped their participation buying more shares in the soft patch....
Retail investors are reactionary.... and they just don't understand the market or even how to pull up a google chart and look at stuff. Just look at how they reacted in the soft housing market -- buying and pushing up prices at the top --- only to bail the minute the market went soft..... and the smart money came in and buys up the inventory at rock bottom prices... holds it for a year or two and sells for a nice gain or holds on and watches their rental income increase AND the value rise.