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Mr.
Market
A Market Update - October,
2008
Benjamin
Graham (a mentor to Warren Buffett) often used a metaphor
that might help explain investor psychology during these periods
of extreme volatility. In reference to the stock market, he
wrote of a mysterious individual he called “Mr. Market.” As
Graham explains it, Mr. Market will call you every day and
try to entice you into trading. The only problem is that Mr.
Market exhibits schizophrenic, manic-depressive and bi-polar
disorders. When he gets happy and optimistic, he goes way
beyond what is appropriate and tries to entice you to join
him buying stocks and bonds after they have made
big runs. When he
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The
Elephant, the Donkey and the Markets
By Sean Casterline, CFA
Politics
is a game that I find hard to get my arms around. The more
debates I watch, the more I realize that neither candidate
has a real grasp on how economies and markets work. I find
myself really hoping our next President has a strong group
of advisors. Regardless of what they know, you have heard
and will continue to hear multitudes of rumors about what
will happen if this candidate gets elected or what will happen
if that candidate gets elected. Should you bail out of the
stock market if a labor-friendly Barrack Obama trumps a pro-business
John McCain? Seems like the natural move, doesn't it? It does
except for the fact that we were faced with this same choice
sixteen years ago, and if you sold out of the markets, when
Bill Clinton took the White House, you would have missed out
on one of the greatest Wall Street bull runs ever, a threefold
gain over eight years. As well, if you bought the S&P
500 when George W. Bush won the presidential
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