Quote: (11-28-2018 07:05 AM)bigswingingdick Wrote:
"Buy when there´s blood on the streets. "
"Be fearful when others are greedy and be greedy when others are fearful"
Or just the simple "buy low and sell high."
It goes against ones gut. Because if something is priced with a high price people will believe it´s worth a lot and so everybody will want to have it because it´s precious. But if it´s worth little then it has no value and people will want to get rid of it because they believe it has no use. What you need is to see beyond the price. Something which is worth 10 euros which is worth 100. The fact it´s priced 10 is just a momentary glitch in the system. Mr Market and all that shit. For some reason some areas of cities become cheap without reason.
There´s a newsletter which have been giving great returns (incredibly from a woman originally). They check the averages of prices and buy when its 10% above the average bottom. And sell when it's 10% bellow the average high. This basically is the Rothschilds principle. I think it's a sound principle of investing.
https://iqtrends.com/
For me it must produce income. To buy something just because it´s low and wait 3-4 years it's not possible. Either it produces rent or dividends. Then I can wait while the money is flowing.
As for now prices should come down if the fed keep increasing rates. But they seem to be easing the trend. Will see. Even at this level cracks are already showing.
^^ Agreed.