Diamonds are a Girl’s Best Friend
Old songs which have stood the test of time always seem to have the best lyrics. When thinking of a suitable title for this blog the following seemed relevant :
Men grow cold
As girls grow old,
And we all lose our charms in the end…
There may come a time
When a hard-boiled employer
Thinks you’re awful nice,
But get that ice or else no dice.
He’s your guy
When stocks are high,
But beware when they start to descend.
It’s then that those louses
Go back to their spouses.
Diamonds are a girl’s best friend.
These simple lyrics encapsulate marriage, unemployment and what happens when the money dries up. All timeless themes relating to life, the business cycle and bull & bear markets.
I have targeted this blog at the UK private investor (whom I believe is far more intelligent & sophisticated than generally given credit for). Terms which may be unfamiliar are expanded upon in the ‘Glossary’ articles which, when they are written, are published on Tuesdays. Articles covering markets, sectors and commentary on FTSE 100 stocks are published on Friday mornings. Commentary on likely turning points in the Dow, S&P and FTSE will be published when dictated by market movements. Do not expect much to be published during the school summer holidays & Christmas holiday periods as I do like to take a holiday or two.
In general I try to write commentary which is a bit more level-headed and longer-term in nature than other commentary which can be found in newspapers. Newspapers have to write something about the markets every day and much of their commentary inevitably focuses in great detail upon reporting current events. I try to step back a little and focus on what the market may do over the longer-term and not worry too much about whether a share price has moved 10% up or down recently. I firmly believe that the greatest advantage the private investor has over institutional fund managers is that the private investor can take a long-term multi-year view and is not bothered about how their portfolio has performed relative to the fund manager’s in the office next door at the end of the next quarter. Hence I will tend to be more optimistic when markets are low and more cautious in my commentary when markets are high.
The general idea, after all, is to buy low and sell high. Buy during panics and sell amidst euphoria.
Tags: bear markets, bull bear, business cycle, euphoria, old songs, panics, private investors, suitable title, timeless themes