After I read this WSJ article I realized that we are in the buying opportunity of a lifetime. That is if you are a contrarian, emphasis mine. =)
The ups and downs of the market are prompting more retail investors to abandon buy-and-hold strategies in favor of opportunistic trading. Some want more control over their money, so they are fleeing funds and advisers — not to mention the feelings of helplessness raised by recent months’ losses. Some are attempting to recoup their losses, while others are stepping back into the markets after a recent string of stock gains and better-than-expected economic news.
But others say things are different this time.“The problem I have with the buy-and-hold strategy is that it’s a bull-market strategy,” say Matthew Tuttle, a financial adviser in Stamford, Conn.“ In the bust, you give all of your profits back.” Mr. Tuttle has recently taken a more active approach to trading. While short-term investors are likely to face higher tax bills — since short-term gains are taxed at higher rates than long-term gains — he notes that some people who incurred big losses last year will be able to carry those losses forward to offset taxes in future years. By JANE J. KIM
Things are different this time? I can think of two times when “things were different” and then collapsed. Dot-coms and Real Estate.