Posted by: Michael Zhuang on: July 31, 2007
Someone asked:”Do you know of any researches/studies carried out that help predict possible upward/downward movements of equity markets?” The following is my answer. Investors are driven to a large extent by greed and fear, and usually they are driven to the wrong directions. Warren Buffet once said:”Be fearful when everyone else is greedy; and be [...]
Posted by: Michael Zhuang on: July 12, 2007
Last week, I went to the Washington Area Money Manager meeting where the keynote speaker was former Fed Governor Larry Meyer. Governor Meyer gave a brief prepared speech on the macro state of the US economy and he spent significantly more time taking questions from the audience. As it turned out, the audience’ concerns about [...]
Posted by: Michael Zhuang on: July 10, 2007
The is a question posted to me, the following is my answer. Most stock market movements are best characterized as “market noise”. Market noise reduces the clarity of our judgments so it is better to be avoided. I review my own portfolio and my clients’ portfolios every quarter. In the review, stock prices play only [...]