tuesday expectation, page-14

I just realised something. We've got one more quarter left, for this year. Hence, with this ridiculous rally that has hit the market over the past 6 months, (and with most of the rise coming on light volume in the summer months) its safe to assume that not many funds are as long as they would like to be. In fact they are probably massively underweight.

The funny thing is, what kills a fund is not losing money. When you lose money, its ok, because everyone else is losing money too. What kills a fund is underperformance in a rising market. It's a cardinal sin for you to underperform a bull market, as opposed to outperforming a bear market. Essentially, investors who are paying you management fees will say:

a) "Oh great, you outperformed the 30% fall. I still lost 5% but thats what I pay you for I guess"

or

b) "What rubbish, I pay you all this money, and you can't even beat the market"

Let's be honest here. How many of us think this way?

Market goes higher I think, with or without a pullback.