Yahoo Finance: “Why calling the market bottom doesn’t matter”
By admin_45 in IN THE NEWS
Excerpt from Yahoo Finance quoting DataTrek's Nick Colas:
.... "DataTrek’s Nicholas Colas, a veteran hedge funder, addressed this question in a note on Monday: what did you give up if you missed the bottom and bought one to three months later.
The answer? Not much.
“Any stock bought a month AFTER the lows was up 30.1% at year-end 2009,” he wrote. “Any stock bought 2 months after the lows was up 20.0% at year-end. Any stock bought 3 months after the low was up 18.4%.”
If you invested during all three periods, you’d be up 22.6% at year-end.
The bottom line here, Colas wrote, was to “not worry about buying the absolute bottom of any market rout because there will be plenty of performance available once it happens convincingly"....
Read the full article here on Yahoo Finance!
