http://www.reuters.com/article/vcCandidateFeed2/idUSTRE4B61FB20081207
This week, Legg Mason’s Bill Miller, a celebrated value investor but whose stock picking is far off the mark this year, said the “bottom has been made” in U.S. equities, and forecast opportunities for strong gains once markets rally.
Miller said that all long-term investors believe that stocks today are cheap, but credit markets must regain health before equity markets can rally. It “looks as if the bottom has been made” in U.S. stocks, said Miller, who runs Legg Mason’s $7.6 billion Value Trust fund.
At the Reuters Investment Outlook Summit this week, 15 prominent portfolio managers including legendary hedge fund investor and philanthropist Michael Steinhardt will discuss if U.S. stocks have indeed hit bottom.
So it would seem that many large investors are starting to think this is either the bottom or bottom is in sight soon. I have also been thinking, based on the divergences, for a while now that the DOW has been signalling buy. However, to make money from that, one would have to buy and hold. Investing is the right thing for this time of markets. Daytrading requires a different strategy. One must find daily movements and make use of those.
The past month of real trading has been an eye opener for me. I have really realized that daytrading stocks and options are really different. The stocks can be held for profit if the trade goes against you a little. The options simply keep losing money. So with each passing day, the underlying security must make a more drastic move than the day before for the options to show profit.