Headlines like this one at CNBC.com are generally a good sign: The teaser runs:
“The gains in ‘bear’ funds have been eye-popping. Some funds soared nearly 80 percent last year, while others are up 39 percent this year alone.”
When everyone’s getting on board, here’s what you need to believe to make money – that there’s a bigger fool out there than you, who’s willing to pay a higher price than you’re about to pay (or in the case of bear funds, who’s willing to sell at a lower price than you - or your fund manager - just sold).
But on the upside, the more headlines like this that appear, the closer the market may be to forming a bottom.
Caveat investor!
“The gains in ‘bear’ funds have been eye-popping. Some funds soared nearly 80 percent last year, while others are up 39 percent this year alone.”
When everyone’s getting on board, here’s what you need to believe to make money – that there’s a bigger fool out there than you, who’s willing to pay a higher price than you’re about to pay (or in the case of bear funds, who’s willing to sell at a lower price than you - or your fund manager - just sold).
But on the upside, the more headlines like this that appear, the closer the market may be to forming a bottom.
Caveat investor!
