PAYING RESPECT TO THE MARKET

PAYING RESPECT TO THE MARKET

Though timing purchases and sales of stocks to coincide with market lows and highs often proves fruitless, value investors share two assumptions with the market timer:

· The market is frequently out of alignment with true value.
· There is a tendency for the market to correct itself.

Furthermore, both market timers and value investors intuitively and empirically know that market movements and fundamental value are related. Somehow, the price of a company eventually rises (and sometimes crashes) to realign with its actual value. Changing conditions, new information, or perhaps the awakening of investors to existing circumstances draws the market as surely as the moon draws the sea.



THRIVING IN EVERY MARKET
Value Investing Made Easy (Janet Lowe):

1. THRIVING IN EVERY MARKET
2. MR. MARKET
3. SUITABLE SECURITIES AT SUITABLE PRICES
4. PAYING RESPECT TO THE MARKET
5. TIMING VERSUS PRICING
6. BELIEVING A BULL MARKET
7. THE PAUSE AT THE TOP OF THE ROLLER COASTER
8. MAKING FRIENDS WITH A BEAR
9. BARGAINS AT THE BOTTOM
10. SIGNS AT THE BOTTOM
11. BUYING TIME
12. IF YOU ABSOLUTELY MUST PLAY THE HORSES