Bookish knowledge always talk about the best approach to stocks is treating it as a long term investment. Mr. Buffet is often quoted for making such long term investments. But in real life, anything might work for anyone I believe.
Lately, US stock market had its one of a kind crash in the year 2008. And then it turned bullish for the next couple of years almost doubling the prices for all indexes. Every now and then experts call markets being volatile. But if we closely notice, it follows a pattern to pull back after every rally. Approximately after every 15% to 20% gain on major indexes it goes for a retreat, something that happened last November also. So it is all up to an investor to choose their style. If they want to be a long term investor they can just treat strong companies like Apple as a good buy at 400s as it may head to $600 in sometime. But if they want to jump on to a price bandwagon they must wait for a month or so as the conditions to market correction is impeccable. Overbought stocks, a protracted period of low volatility and the presence of multiple headlines are a few signals for that much awaited plummet.
Experts also have their opinion about the current scenario. "If you're a long-term investor now would not be a good time to be buying stocks, but if you're a trader it could still be a good time," said Phil Silverman, partner at Kingsview Capital. "If you look over a full cycle of the market, the valuations aren't that attractive."
So when I synthesize all these data, it just makes me think that if there are any black or white styles in stock market investing.
Reference: CNBC
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