Originally posted by qwiktrade
trdrmac.. interesting numbers.. i wonder about some of these funds.. the decline was so fast and now with the redemptions they surely must be having.. i wonder how many of them have sold positions near the bottom and don't have any cash to take advantage of any bargains.. although, in my opinion we haven't seen bottom yet..
Qwik,
I am going to guess quite a few. This last leg was really brutal, nothing xcept munis left standing. This is one of the reasons that I like indexes so much, especially the etfs. If people want to sell they do it in the market, so it does not effect the performance of the fund vs active management. Plus most managers never match the index, or they are hot/cold, so why mess with it. That is what I have me for.
And you are right about the three girlfriends, I used to have 3 that lived in the 900 area code. And when I speak of doubling down or scaling in, these are for longer term trades. For instance most of the year I have been buying Junk Bond Funds and Emerging Market Debt. When I sell will be a function of when it hits my price, when the story changes, or when I have some better use for the money.
But for a shorter term trade, I would consider the above to be financial suicide. Although, I am working on being more patient since I leave too much on the table many times.
