dwot (99.49)

Time is Running Out

October 19, 2008 – Comments (2)

The title is of an article that I found interesting.  The author talks about the regrets of not taking action to all the bear messages.

It also has a hedge mentioned, but I have no idea what it means, 

"It's instructive to see how unhedged portfolios performed subsequent to the 1929 debacle. Kirby assumes a hypothetical Roaring Twenties investor puts $100,000 into the market at the worst possible time: Sept. 30, 1929. The mix is 60% S&P 500-type companies and 40% U. S. Treasury bonds. From October, 1929, to June, 1932, the Dow Jones Industrial Average lost 88% of its value and it took 22 years -- to the summer of 1954 -- to recover those losses. If this same investor focused on large-cap blue chips, reinvested all dividends and interest, and rebalanced annually, the portfolio would have recovered to $100,000 again by February, 1936 -- a much shorter time frame than 1954."