Which Way’d They Go?
Richard Shaw (June 26th, 2009) Writes:
Saying it’s better to buy when securities are going up than when they are going down is easy. Actually determining what is up and what is down is not quite as easy.
We have said and wish to reiterate that you should buy makes good sense to own for fundamental reasons when it is going up and not when its goes down.
We think computers with their cold objectivity can help draw the line between up and down or flat. As humans, we may tweak our own criteria to make sure that the securities we like are interpreted as we wish them to be, more than as they are in marginal situations.
What makes logical sense to us is to define your criteria of up and down, and then hand-off the task of deciding what is up and down to a machine that has no emotional attachment to the determinations.
Time frame is the
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