'Bears' vs 'Doom and Gloomers'

[Andrew_A]

I think we have a lot of smart people who post on these forums, and some vigorous debate which only rarely goes too far.

I would like to write about something that I have been thinking about recently.

The Bear

Not every asset class is going to perform just because you want it to or have your dollars invested in it. The Bear is a very important person who can point out the negatives regarding the economy or an investment. The Bear is a nescessary addition to counter 'irrational exuberence'. A lot of money is made in recessions and depressions (so I'm told) and the bear can be a very very rich bear if they have strategies to implement.

The Doom and Gloomer

This person confuses themselves with a bear. They can be quite intelligent and articulate and look and sound a lot like a bear sometimes; though they definitely aren't. The D&G is an expert at shooting holes in investing and investments and telling you why you shouldn't do that. A key difference between a bear and a D&G is the bear can help you with an alternate strategy and can make you a lot of money, the D&G will just make you want to run and hide under a matress with all your money.

I enjoy learning about different strategies people use to find new investments and make money, something bears can do just as easily as bulls.

I think a key question to ask someone who might be a D&G is "What are your strategies then? How are you going to invest and profit from your views?".

[Thommo]

"Thanks" Andrew, "but no thanks". :p

[keithj]

Interesting thoughts, Andrew.....

I'd say bearish strategies include selling short, buying puts, stopping buying IP until conditions improve, buying gold and many others. These are all posititive actions that can prove profitable.

ITOH, D&Gers tend to take no action. Except to keep cash available until the perfect investing conditions arise (never happens).

Informed investors are often bearish regarding some asset classes, and bullish towards others. Therefore asset allocation is crucial.

KJ

[Andrew_A]

Interesting thoughts, Andrew.....

I'd say bearish strategies include selling short, buying puts, stopping buying IP until conditions improve, buying gold and many others. These are all posititive actions that can prove profitable.

ITOH, D&Gers tend to take no action. Except to keep cash available until the perfect investing conditions arise (never happens).

Informed investors are often bearish regarding some asset classes, and bullish towards others. Therefore asset allocation is crucial.

KJAgree completely Keith. I read your posts about the managed funds and the index funds and did my own research and learnt something new as a result. Thanks :)

[see_change]

For those who may not be aware...

Once Robert Kiyosaki decided how he was going to get out of the rat race (via cash flow positive property ) , it took him 5 years before he found a suitable property to buy.

See Change

[House_Keeper]

I think we have a lot of smart people who post on these forums, and some vigorous debate which only rarely goes too far.

I would like to write about something that I have been thinking about recently.

The Bear

Not every asset class is going to perform just because you want it to or have your dollars invested in it. The Bear is a very important person who can point out the negatives regarding the economy or an investment. The Bear is a nescessary addition to counter 'irrational exuberence'. A lot of money is made in recessions and depressions (so I'm told) and the bear can be a very very rich bear if they have strategies to implement.

The Doom and Gloomer

This person confuses themselves with a bear. They can be quite intelligent and articulate and look and sound a lot like a bear sometimes; though they definitely aren't. The D&G is an expert at shooting holes in investing and investments and telling you why you shouldn't do that. A key difference between a bear and a D&G is the bear can help you with an alternate strategy and can make you a lot of money, the D&G will just make you want to run and hide under a matress with all your money.

I enjoy learning about different strategies people use to find new investments and make money, something bears can do just as easily as bulls.

I think a key question to ask someone who might be a D&G is "What are your strategies then? How are you going to invest and profit from your views?".


Good points Andrew, it is an important distinction, especially in the current market.

Cheers,

[Panic]

I have read this somewhere:

"In every market there is time to buy, time to sell and time to go fishing"

"Fishing" in my mind does not have to be unproductive money wise, it may be "fishing" in another market :-)

Thx
V

[Aceyducey]

Nice concept Andrew,

It's strong enough to turn into a book (hint, hint)

Cheers,

Aceyducey

[Les]

The D&G is an expert at shooting holes in investing and investments and telling you why you shouldn't do that.
That must make a lot of relatives and friends "doom and gloomers" :D

Good post, Andrew A - thanks,

Regards

[DD1]

We all have successes in property or aspire to them, its fair to comment then that some of our closest friends and family are the worst possible people to talk to regarding property and investing in general. They see us more active investors as greedy, insensitive to their(our family's) positions, and most of all we are gloating when we talk about our portfolios.

This is i'm sure, true for most of us that have people around us that prefer to go to the pub and forget where they have been the next morning, to actively improving our lives and futures through investing.

Who here has had the "gee, you were lucky" thrust on you after years of saving, planning, developing and actioning on a plan to get ahead. I for one get a bit miffed when "i'm lucky" and why do you always try to encourage us to invest as it is not "our thing".

We all love our family and appreciate our friends for who they are so what is the biggie on accepting us as we are as well.

Gloom and Doomers......... no just the family!!

DD1

[Thommo]

I'm not a D&Ger. At least by the above definitions I'm not.

Check out this chart to see how one of my favourite investments is performing.

http://www.kitco.com/charts/livesilver.html

Thommo

[Merovingian]

I think you can determine whether someone is a bear or D&Ger by looking at their investment portfolio. If they have a portfolio, they're a bear. If the don't, they're a D&Ger — the sky's always falling...

Just my $0.02... :)

[WillG]

I think you can determine whether someone is a bear or D&Ger by looking at their investment portfolio. If they have a portfolio, they're a bear. If the don't, they're a D&Ger — the sky's always falling...

Just my $0.02... :)

Love your work Merovinigan. lol (you may have to round your $0.02 to $0.05 unless you use a cedit card ;))

Funnily enough, every time a D&Ger's starts picking holes I am inclined to ask them what investments they curently hold.

[grubar30]

Once Robert Kiyosaki decided how he was going to get out of the rat race (via cash flow positive property ) , it took him 5 years before he found a suitable property to buy.
He actually said this? 5 years. Hmmm, I'm sensing slight exuberance and exaggeration.

On the subject of Robert Kiyosaki, he gets a plastering in the link below

http://www.johntreed.com/Kiyosaki.html

Still, whether his books are factual or not, I would recommend reading his book Rich Dad Poor Dad to anyone interested in changing their lives through property investing.