Comments on: Bear Market Valuation Indicators? http://www.canadiancapitalist.com/bear-market-valuation-indicators/ Helping you invest and prosper Sat, 11 Feb 2012 19:27:54 +0000 hourly 1 http://wordpress.org/?v=3.3.1 By: Anjo http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185561 Anjo Wed, 18 Mar 2009 03:30:17 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185561 Ed: Just wanted to respond to your earlier comment about Derek Foster: "He must have done something right to retire at 34." Many of us are of the opinion that Mr. Foster was fortunate in his timing and selection of a few select stocks, but that his good fortune is nearly impossible for the average investor to replicate. It could be likened to a thousand individuals buying lottery tickets and one of them winning. Would we think that the one winner who became instantly rich was doing the right thing or was just lucky? The concern that CC and many others have, including myself, is that Mr. Foster's advice may be hazardous to the financial health of the average investor who simply adopts his strategy without due diligence. I don't think that CC or others are intending this critique of Mr. Foster's strategy as a personal attack, but instead as a way to prompt investors to question and get more information about the strategy before those investors engage in it themselves. Ed: Just wanted to respond to your earlier comment about Derek Foster: “He must have done something right to retire at 34.”

Many of us are of the opinion that Mr. Foster was fortunate in his timing and selection of a few select stocks, but that his good fortune is nearly impossible for the average investor to replicate. It could be likened to a thousand individuals buying lottery tickets and one of them winning. Would we think that the one winner who became instantly rich was doing the right thing or was just lucky?

The concern that CC and many others have, including myself, is that Mr. Foster’s advice may be hazardous to the financial health of the average investor who simply adopts his strategy without due diligence.

I don’t think that CC or others are intending this critique of Mr. Foster’s strategy as a personal attack, but instead as a way to prompt investors to question and get more information about the strategy before those investors engage in it themselves.

]]> By: Nurseb911 http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185542 Nurseb911 Wed, 18 Mar 2009 01:13:15 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185542 A wise investor once told me that investors spend too much time in the past and not enough thinking about the future. As an investor you make your own future based on your decisions. Looking forward rather than in the rearview mirror might be something others want to consider in this current environment :) A wise investor once told me that investors spend too much time in the past and not enough thinking about the future.

As an investor you make your own future based on your decisions. Looking forward rather than in the rearview mirror might be something others want to consider in this current environment :)

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185536 Canadian Capitalist Wed, 18 Mar 2009 00:40:27 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185536 Ed: I'm curious. Which comment do you find bashful? As a matter of fact, I have a huge issue with Derek Foster's latest move of selling out of his entire portfolio and using it for getting publicity for his new book. I haven't yet read the new book but apparently he now advocates option strategies that are frankly very risky for retail investors. I don't know why he should get a free pass when tough questions need to be asked. Ed: I’m curious. Which comment do you find bashful?

As a matter of fact, I have a huge issue with Derek Foster’s latest move of selling out of his entire portfolio and using it for getting publicity for his new book. I haven’t yet read the new book but apparently he now advocates option strategies that are frankly very risky for retail investors. I don’t know why he should get a free pass when tough questions need to be asked.

]]> By: Ed http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185522 Ed Tue, 17 Mar 2009 23:47:11 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185522 CC: what a great blog! Thank you for sharing the knowledge with me and the world. I like how you respond to questions so quickly as well. I have nothing to suggest for improvement. However, I noticed that you have an issue with Derek Foster. He must have done something right to retire at 34. I understand you may not agree with his style. I just found your follow-ups and the comments on him a bit bashful. After reading his first book I discovered the investment world and his ideas helped free myself from under the mutual fund bondage. I just don't think the sheer volume of focus on Mr. Foster has been that fair of late on your blog. Otherwise, I love your blog and will continue to visit. Thanks and keep up the good work. Ed CC: what a great blog! Thank you for sharing the knowledge with me and the world.

I like how you respond to questions so quickly as well. I have nothing to suggest for improvement.

However, I noticed that you have an issue with Derek Foster. He must have done something right to retire at 34. I understand you may not agree with his style. I just found your follow-ups and the comments on him a bit bashful. After reading his first book I discovered the investment world and his ideas helped free myself from under the mutual fund bondage.

I just don’t think the sheer volume of focus on Mr. Foster has been that fair of late on your blog.

Otherwise, I love your blog and will continue to visit. Thanks and keep up the good work.

Ed

]]> By: Christine http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185513 Christine Tue, 17 Mar 2009 21:48:01 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185513 CC, just wanted to say thank you for your continued rational posts. As the financial press is all doom and gloom these days, it's kind of terrifying as I invest my family's money. Posts like these help me keep a clear head and weather the storm! CC, just wanted to say thank you for your continued rational posts. As the financial press is all doom and gloom these days, it’s kind of terrifying as I invest my family’s money. Posts like these help me keep a clear head and weather the storm!

]]> By: Marc http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185512 Marc Tue, 17 Mar 2009 21:25:36 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185512 Can't wait to hear if Derek gets back into the market at the right time or if he misses the rebound completely. I'm guessing he'll miss. Then again I'm sure he'll have some kind of excuse justifying why he didn't really miss blah blah blah... Can’t wait to hear if Derek gets back into the market at the right time or if he misses the rebound completely. I’m guessing he’ll miss. Then again I’m sure he’ll have some kind of excuse justifying why he didn’t really miss blah blah blah…

]]> By: Debt Reduction http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185510 Debt Reduction Tue, 17 Mar 2009 21:00:49 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185510 I hope we don't reach those historic lows. The market is based on confidence. I believe there is a lack of confidence in our government at this time. We need to get back to the basics. I hope we don’t reach those historic lows. The market is based on confidence. I believe there is a lack of confidence in our government at this time. We need to get back to the basics.

]]> By: Robillard http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185508 Robillard Tue, 17 Mar 2009 19:59:40 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185508 Wouldn't the market capitalisation issue also be influenced by the share of incorporated and publicly-traded companies relative to unincorporated and non-publicly-traded companies? Does the US economy have more publicly-traded companies that constitute a larger ratio of market cap to GDP now than in the 1970's? Wouldn’t the market capitalisation issue also be influenced by the share of incorporated and publicly-traded companies relative to unincorporated and non-publicly-traded companies? Does the US economy have more publicly-traded companies that constitute a larger ratio of market cap to GDP now than in the 1970′s?

]]> By: Canadian Capitalist http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185482 Canadian Capitalist Tue, 17 Mar 2009 14:44:13 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185482 Phil: Actually, trailing p/e is now very high -- around 30 because earnings has just collapsed to around $27, compared to $84 at the peak of the cycle. I don't know where the 'p/e is around 11' claim comes from; probably it is forward p/e and not trailing p/e. Phil: Actually, trailing p/e is now very high — around 30 because earnings has just collapsed to around $27, compared to $84 at the peak of the cycle. I don’t know where the ‘p/e is around 11′ claim comes from; probably it is forward p/e and not trailing p/e.

]]> By: charles http://www.canadiancapitalist.com/bear-market-valuation-indicators/#comment-185478 charles Tue, 17 Mar 2009 14:26:26 +0000 http://www.canadiancapitalist.com/?p=1878#comment-185478 I don't blame him for pushing his book but his hypocrisy in timing the market based on supposed research is counter to his writing. He's more a personal finance sucess story than a investment guru. What he espouses is information readily known in other books or freely on the web. I don’t blame him for pushing his book but his hypocrisy in timing the market based on supposed research is counter to his writing.

He’s more a personal finance sucess story than a investment guru. What he espouses is information readily known in other books or freely on the web.

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