Enterprising Investor Forum

As already discussed various times, don’t worry about the volatility – try to profit from it!

The Enterprising Investor is focused on holding for the long-term and these swings should simply represent interesting buying opportunities… we actually recommend that you start placing daily Limit Buy orders say 10-15% below the current price of the stocks you have been following and are current targeting to take advantage of the deleveraging which is still taking place:

• Stocks with the highest institutional ownership continued to underperform the ones with the lowest
• Hedge-fund managers are under increased pressure to liquidate their positions as banks are asking for more collateral to back borrowing
• Most funds are bracing and preparing for investor redemptions (experts say around 25%)
• Investment bank winding down is forcing hedge funds to adjust their strategies

This is a classic catch-22 situation BUT mostly for those who are invested through leverage and not for the long-term buy and hold investor that does not have short-term liquidity needs.

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