Inter-market relationships

[BlueChips]

so you are implying buy and hold is basically worthless? of course, I'm not saying anyone should follow analysts' advice as they are a bunch of crooks anyway..but what about Warren Buffet? I think we can safely say he had quite a success buying and holding companies....

[Leth]

I don't imply anything. I only provided perspective which anyone can take as they see fit.
Also, Warren Buffet's Company Berkshire Hathaway (a Multi-Billion Dollar Company) actually buys companies outright via takeovers and makes them more profitable which in turn raises the stock prices in those companies. He doesnt just buy and hold stocks in companies per say like the normal investor is accustomed to. Also, there are only a few books he actually identifies with along with many interviews where he admits to this fact. All other books (hundreds) are trademark purchases of his name and they assume that he is a typical buy and holder.

[BlueChips]

sorry I misunderstood you. Regarding Buffett, I think you are right. I did some research on him yesterday, and found out he doesn't just buy and hold companies passively as many people think (me included). I guess this is just another one of those stock market myths.

[Leth]

no worries...i was under the same impression myself at one time. i just read alot (which is how i know). as you can tell...i don't have much of a social life.

[Alchemist]

Originally Posted by Leth

i don't have much of a social life.

who does

[ChaosTheory]

generally there is an inverse relationship between interest rates and the price of both stocks and bonds. that is, as interest rates go up, price of existing bonds go down, and stocks also suffer from it. ideally, an interest rate hike would cause companies' profits to shrink. as a result, stock market prices suffer

[BlueChips]

to better understand how things correlate to each other I would suggest Ken Fishers' The Only Three Questions That Count

[breakout]

thanks for the book suggestion bluechips