JESSE LIVERMORE - legendary stock traderBackA brief analysis of him and his method of investing. Livermore's big mistake was investing in false bottoms during the Depression, thinking the mini up-rallies would last, but they didn't. The market fell 90% by 1932, and he eventually filed for bankruptcy. Best to patiently sit on the sidelines during a long recession, resisting the urge to trade. There's an old saying that no matter how bad the market gets you can always make it worse. Livermore didn't die in vain if we learn from him. He would say today, "Don't go my route" or use the barbell method and keep 85% safe in two year Treasuries and gold and swing for the fences with the other 15%. Why does the market look risky for 2010? Because the Fed has boosted demand for stocks ad bonds artificially by lowering interest rates to near zero. They made cash trash, so investors had little choice but to buy gold, stock, bonds -- thus, the rallies in each during 2009. Key facts to keep in mind: Over the past 25 years, "Home mortgage and consumer debt jumped from 60% to 135% of aftertax annual income... a third of mortgages are underwater.. average home equity has dropped from 48% to 23% now." -- Gary Shilling, Forbes 11/30/09: 126. Category: Education Uploaded: December 25th, 2008 @ 4:21 am Author: JoeyFudd Length: 05:52 Rating: Views: Tags: investor jesse livermore speculator stock Related Video Links:» View Video Comments For JESSE LIVERMORE - legendary stock trader » View JoeyFudd's Other Uploaded Videos Video Thumbnails:Video Embedding Code:* Embed this video on your website, social bookmark, myspace, or blog. |
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