**[investwise]** The Wisdom Of Ken Fisher-Be A Bad News Bull [1 Attachment]

 

[Attachment(s) from Maverick included below]

Ken Fisher: Be A Bad News Bull   "Bad news is good.You can expect more of it. And you can expect the stock market to resume its recovery, which began November 20. Do you find this line of argument perplexing? You have company. A lot of my clients are baffled at the notion that the stock market should be climbing at a time when employment is declining.   But if you look back at the pattern in past stock market recoveries, or think about what the stock market represents, the combination of a bull market and a recession will not seem so strange."   "Look past the pessimism and remind yourself that it's better to be a little early than a little late in getting back to stocks."   "Corrections and bear market beginnings act very, very differently. Having one means not having the other.And this decline has the distinct fingerprint of a correction.Corrections are preceded by spike tops. You see a rally followed by a sharp cliff that takes the market down 10% to 20% in a very short time."   "The prices/sales ratio is the relationship between a company's sales and its market capitalization." "[James P.] Shaughnessy then shows that you do better still combining Price-to-Sales Ratios (PSR) with other ratios in a more complicated multivariate attack. While true, I doubt most folks will ever do this. If it's complicated, most investors won't stick to it. But there is lots to learn here."   "In a similar vein, professors William C. Barbee Jr., Sandip Mukherji and Gary A. Raines wrote a barn burner of a paper in the March/April 1996 issue of the Financial Analysis Journal entitled 'Do Sales-Price and Debt-Equity Explain Stock Returns Better than Book-Market and Firm Size?' Their answer?   Yes. Challenging the academic establishment's current conclusion that price-to-book is the best way to view reality, this trio's academic work shows that price/sales ratios are 'a more reliable explanatory factor' for stock returns than other measures."   Safe Harbor Statement: Some forward looking statements on projections, estimates, expectations & outlook are included to enable a better comprehension of the Company prospects. Actual results may, however, differ materially from those stated on account of factors such as changes in government regulations, tax regimes, economic developments within India and the countries within which the Company conducts its business, exchange rate and interest rate movements, impact of competing products and their pricing, product demand and supply constraints.   Nothing in this article is, or should be construed as, investment advice.

__._,_.___

Attachment(s) from Maverick

1 of 1 File(s)

Wisdom-Fisher.pdf

Reply to sender | Reply to group | Reply via web post | Start a new topic

Messages in this topic (1)

Recent Activity:

• New Members 9

Visit Your Group

*****************************************
http://in.groups.yahoo.com/group/investwise/

INVESTMENTS IN INDIA
We are low-risk, long-term investors. 

Stocks, mutual funds and the entire investment gamut.  Only financing/investment avenues in India will be discussed. 

For any assistance, questions or improvement ideas, contact investwise-owner@yahoogroups.co.in

****************************************************************

NEW! ==== Check our LINKS and FILES sections for a world of information. REGULARLY UPDATED.

NEW! ==== Check "Tracklist" in Links and Files sections for Investment Ideas.

****************************************************************

Switch to: Text-Only, Daily Digest • Unsubscribe • Terms of Use

.

__,_._,___