Kevin Holt manager of the Van Kampen Comstock Fund (ACSTX);
In an environment where people panic, and they overact based on what they see on a day-to-day basis, our competitive advantage at the end of the day is patience, in a world and market that's very impatient.
Assuming you are more interested in investing versus trading, the ability to zoom out a little and think about the big picture is crucial when the real goal is to have enough money when you need it. No single holding can be the best at all times in all markets.
And this from Dylan Grice at Societe Generale who "...penned a piece entitled 'Buy Japan, and prepare to buy with both hands. 'Grice pointed out that there were still plenty of risks, but Japan 'is beginning to look cheap.' "
Cheap stocks don't have to go up and from the top down Japan has a debt load that is 225% of GDP and a serious demographic problem. Speculating that something will have a quick pop can be valid idea of course but I think you're on unstable ground when you do that type of trade in a market where the fundamentals stink as I believe is the case with Japan.
3 comments:
Japan wasn't the most attractive investment destination before.
One massive earthquake, one incredible tsunami and one still-by-no-means-resolved gigantic nuclear meltdown later, and now it's attractive?
That's not a falling knife people are trying to catch. That's a falling guillotine.
BillM
Good point. It is my understanding that Japan is taking actions to stabilize their currency and economy trying to stave off deflation to keep their exports strong, but that is going to heart when they have to rebuild...
I don't think I'd touch Japan to much government involvement now it's just going to ramp WAY up!
I've looked at Japan for several days, can't see how it's more attractive post earthquake. The value of the YEN shooting up certainly isn't what I would consider good news for their economy or my potential investment performance.
Having said that, I do like AFL.
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