I'm sure there were plenty who waited for Yahoo to 'Bottom out' so that they can time the buy so perfectly. They would have looked at tons of 'Technical Indicators' and Shapes. They knew about Fed Cuts, Options expiring, Global recession
Well, the one's who were waiting lost a 50% jump in the stock price and will probably spend the rest of the year playing the would have could have should have game
No Technical Analysis can ever predict the world.
In the Black-Scholes Options pricing world, The chance of a 50% returns on a single day will probably happen once in Seven Thousand Quadrallion Years and the hedge funds who play in a band of price ranges would have never modeled a 50% price jump on a Yahoo stock. All the millions they made when Yahoo was trading within +10% and -10% would have gotten wiped out.
Hedge Funds rely very heavily on a 'Normally Distributed' World, while the real world is skewed and has fat tails. Hedge Funds return obscene returns in normal years, but they lose everything in one single abnormal year (that which their model predicts will only occur once every Trillion years but in reality happens every 5 to 6 years)
If you were a fundamental investor, you'd have been so disappointed in Yahoo's quarterly results that you'd have shorted it like crazy only to see Yahoo rise 50%
There would have been plenty of 'brilliant' and 'smart' Wall Street investors who would have playing the classic Long Google, Short Yahoo pair investing (After all it is a universal truth that Google rocks and Yahoo sucks) and leveraged it like crazy. Well their losses also got leveraged in the past week
Finally, remember when the US markets was closed due to MLK day and the World Market was tanking all around the place. Many 'smart' investors decided to pull out from stocks or wait in the sidelines till things got clearer. Well S&P 500 has returned 5.9% in 10 days or 212% per year since the exact day when the future looked the worst for the stock market.
If you invest in a mix of World 1000 and World Bonds automatically, none of these matters and more importantly you don't have to worry about useless Macro economic data and useless research which really doesn't help you in any meaningful way(except to probably make wrong decisions)



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you'll see at times i choose to be a growth and/or a momentum investor also.
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