warning on 200 billion dollar asx slump, page-76

"Even if the market did drop 15% as mentioned there are still plenty of portfolios still showing positive returns"



Only those who have played this game the way it should be played, and have experienced long-term success, can appreciate what you are saying.

For instance, if you have been in stocks like NAB, WDC (in all its incarnations), WPL, BHP, WES, WOW etc ... your cost base is negligible.

Therefore, even if you believe that the market is getting ahead of itself, it still does not make sense to sell your *good stuff*.

If you do, the is an immediate *certain* consequence.
25% of your capital is p1ssed away in the direction of the Honourable the Treasurer.
Therefore, to finish ahead of the game, you need the market to fall by more than 25% so that you can buy back and stay in the game. Not only does the market have to fall by more than 25%, it has to do so quickly. If it takes, say, 12-18 months, there is another 12-18 months of profits and dividends down the drain and you need an even greater fall to catch up.

Thats why those who know what they're doing dont let go of *good* assets. They will typically buy more on weakness, or short *craap* assets at the top like Amcor etc ...

But you have to know your shiite.
You need to know whats good and whats craap.
Thats how you have long-term success.

Chicken and egg.