Sayings and Adages

There are several sayings and adages that you’ll hear about the stock market.  Some of them are true some of the time; none of them are true all of the time.

The stock market tends to discount the future.  The P/E ratios of some stocks are so high they seem to be discounting the hereafter.

There are good stocks and there are bad stocks.  The good are called blue chips; the bad, dogs.  It’s OK to own a dog.  With the stock market, every dog has his day.

Some people will buy a bad stock and know they are a fool for doing it.  Their hope is that they will eventually sell it to a greater fool at a higher price..

You need not love a stock forever.  Love it while it’s doing well.  After that, sell it and let someone else love it.

Yes, diversify is good advice.  But Mark Twain had a different idea.  “Put all your eggs in one basket,” he said, “and watch the basket.”

Bulls hope the market will go up; bears hope it will go down.  Pigs are greedy.  It has been shown that bulls make money and bears make money but pigs get slaughtered.

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