Tops/Bottoms/Recessions...Go Somewhere else for that Fookin BS! Long-Term Only...No Speculation here...Hospitality & Mid-Stream Energy...Back Up the Trucks...Average In. Remember...Plan = Process + Manage Trade(s).
Find-Fix-Finish!
Cheers!
Find-Fix-Finish!
Cheers!
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Price has no upper or lower bound. Value does. Price is reactive, Value is proactive!
Old time value investors live by the adage that prices can go up and down, with little relationship to value, but that they eventually converge on value. That sounds reasonable until you consider what "eventually" means, at least in the context of equity in a publicly traded company. Absent a catalyst causing the convergence, it is true that price will not only diverge from value in the short term, but it could do for very long time periods. Put simply, assuming that you will be rewarded for being right on value can be a pipe dream, and Keynes was correct when he said that the "market can stay irrational longer than you and I can stay solvent". So what is it that keeps investors toiling at the fundamentals, hoping to get rewarded? The answer is faith, faith that they can estimate value and faith that the price will adjust to value. It is faith because I can offer you no proof for either proposition, and it is faith, because its strength will be tested by markets like this one.
Musings on Markets
aswathdamodaran.blogspot.com
Old time value investors live by the adage that prices can go up and down, with little relationship to value, but that they eventually converge on value. That sounds reasonable until you consider what "eventually" means, at least in the context of equity in a publicly traded company. Absent a catalyst causing the convergence, it is true that price will not only diverge from value in the short term, but it could do for very long time periods. Put simply, assuming that you will be rewarded for being right on value can be a pipe dream, and Keynes was correct when he said that the "market can stay irrational longer than you and I can stay solvent". So what is it that keeps investors toiling at the fundamentals, hoping to get rewarded? The answer is faith, faith that they can estimate value and faith that the price will adjust to value. It is faith because I can offer you no proof for either proposition, and it is faith, because its strength will be tested by markets like this one.
Musings on Markets
aswathdamodaran.blogspot.com
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Let's see what happens...this Market is Unpredictable and in full on "Disruption" Mode...if you start to see a big political fight over fiscal between the Congress Incompetants -vs- the Senate Incompetents...that might be your signature needed to manage your portfolio appropriately...Cheers!
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EPD setting up as a SHORT for the next x2 months....O&G blood bath is just beginning....lower Crude coming in price war....basement sale on everything....