My Pants on Fire

On 5/10/12 I was Liar Liar!

Before I get started, go read "Has Altria Become the Perfect Stock?" in the Motley Fool (Oct. 2011). Altria is.

Oh things have reversed since my last article. Our lowest point now is after the sell-off in the last few hours of trading. BAD SIGN-NO REBOUND THROUGH THE DAY'S TRADING. Bad sign, "I been down since I begin to crawl". Be afraid now.

Hey, it's still generally easy & true: Buy in October, sell in May. A few years may vary but you're making money that way. In a flat market making money is good. You can do it with stocks if you are willing to pay commissions. Commissions aren't very much at many reputable brokerage houses with online access. However, your mutual fund company won't let you buy & sell into their money market (if they even offer that option). They call that market timing and claim that it affects investors too much. Bull-it affects CEO's paychecks and guarantees. Go ahead and try it. Buy your mutual funds in October and sell them into the safer (American Funds, who I happen to like, or whatever) mutual fund's money market in May. Then rebuy the same equity funds in October again. There is no law against it. Your mutual fund company will tell you that they don't need your business very soon.
Buy and hold. It works for American Funds but not for you. Investing isn't about the investor's well-being. If it was about you, fundamental and competent market timing would be allowed and encouraged.

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