Two school of thoughts, Part II

Sorry for leaving yesterday post half hanging. Not that I am trying to look good and intelligent by fitting the story retrospectively after seeing how the market close. I believe the market has got to a point that seems to lose themselves - lost, literally lost. I have never see so many people thrashing Warren Buffet, Boone Pickens, Bill Miller, Jim Rogers, etc in the last so many years. Suddenly, it's like the death of gods, all has become atheist. I have never seen whatever techniques these investors deploy do not seems to work. You just name what ever model you can find - it does not seems to work. One word - frustrating.

Those who try to put up some positive encouragement look amateurish and foolish because market judge them by price of security. Warren Buffet who trying to put up his endorsement in GE by putting $ 5 Billion dollar when the price was around US $ 23/share, GE lost 60% of its value in less than six month. Was his faith shaken? He got the opportunity to get out twice around US $ 60 in American Express but saw the value dwindled by 80%.

Let's talk about the celebrated commodity guru - Jim Rogers - he has been very bullish on commodities but I believe he got thrashed too. He came out even last year because of he shorted USD/Japanese Yen and banking stocks and not making a killing in commodities, China or Taiwan. There are people begin to question whether he is making use of media to promote his personal interest.

The last batch who makes some money or lose lesser money was the technical group who are out of the market most of the time, when they put in some money to work - guess what - they lost almost 20% since they turned positive beginning of the year. Now that this group of people believe that since the market has retraced by 50%, it could retrace more. If DOW hits 5,000 marks, I do not know honestly what will be the state of the world. On the other hand, these guys are saying if you are dealing with people when irrational side hijack the brain, anything can happen.

Honestly, I do not what to do too except putting money to work at what ever target that make sense to me - very slowly. I believe I am going to do some remedial class this weekend - read chapter 8 and chapter 20 of The Intelligent Investor. Take care!