because (or when) it offers higher yield (after risk adjustment) compares to other asset classes.
to measure our yield on investment, we might have our own favorite preferences. i personally prefer : a. Comparable or higher sustainable free cash flow yield i may expect from my stock 3-5 years period Vs Bond. b. Understated Hard Assets sitting on the balance, Ripe for acquisition or un-locking scenario. c. Solid Bussiness model that can counter inflationary effect (passing through the inflatianary pressures to their consumers without losing the sales volume and growth), because virtually a good and solid stock is the only effective real-hedge against inflation. because they can adjust prices of their sales to go in line with inflation, hence higher net income, hence higher real measure income. how bout u El? i have to say ive been curious, pardon my question, if u were sitting on the hat of an investor, what traits would u prefer of ur holdings/ur stocks? ^_^ On Thu, Oct 22, 2009 at 10:24 AM, It's Elaine! <elainesu...@gmail.com>wrote: > > > *Actually I don't know that, yet. Ok, first let me ask you.. > > * > > - *Why investor buy stocks?* > > > On Thu, Oct 22, 2009 at 10:20 AM, <highwaysta...@gmail.com> wrote: > >> >> >> Yes, and waiting to get back in...at a discount. Right, El? >> >> Sent from my computer of course! >> ------------------------------ >> *From: * "It's Elaine!" <elainesu...@gmail.com> >> *Date: *Thu, 22 Oct 2009 10:17:20 +0700 >> *To: *<obrolan-bandar@yahoogroups.com> >> *Subject: *Re: [ob] More than $3 Trillion Waiting on the Sidelines to buy >> stocks >> >> >> >> *This should answer Boyz' question to me days ago. The money has been >> going nowhere, stucks on the 'safest' instruments such as CDs, gold and >> bonds. >> * >> On Thu, Oct 22, 2009 at 10:10 AM, dunia ini indah >> <pusatdu...@yahoo.com>wrote: >> >>> >>> More than $3 Trillion Waiting on the Sidelines to buy stocks >>> >>> >>> Published: October 22, 2009 >>> >>> >>> According to some estimates, investors have parked more than >>> $3,000,000,000,000.00 - that's three trillion dollars - in money market >>> funds waiting for the markets to calm down before jumping back into the >>> game. Of course, some make the argument that if things return to normal, >>> that tremendous liquidity would come roaring back in, making a faster >>> recovery possible. Still, by recent standards, that amount is staggering >>> >>> and local investment adviser Todd Stoner said that "big round number" >>> might entice investors off the sidelines and back into the market end of >>> this year. >>> >>> Investors have long been bracing for a significant pullback. But any >>> retreats in stocks have been modest -- less than 10 percent -- and brief. >>> The market continues to feed on its own momentum. >>> >>> "I think what's happened is you had all these people sitting on the >>> sidelines waiting for the correction to come," said Peter Schwartz, >>> principal at Gregory J. Schwartz & Co. "But as time goes by and we haven't >>> had any major pullbacks, these people sitting on the sidelines are finally >>> pulling the trigger, saying, 'I can't wait any longer.' " >>> >>> According to The Institute's Board of Governors sets Institute policies >>> and oversees ICI activities >>> As this link shows : >>> http://www.ici.org/research/stats/mmf/mm_09_24_09 >>> >>> >>> There is about $3.5 to 4 Trillion sitting in money market funds >>> collecting less than 1% in interest. This is as of a month ago. People are >>> just scared and do the opposite of what they are supposed to do, which is to >>> buy when stocks fall. Instead of loading up in the last few months on >>> equities, which were selling at generational low price ratios, investors >>> instead piled into bonds, CDs and Gold >>> >>> >>> >>> >>> >>> >>> >>> >>> >>> ------------------------------------ >>> >>> + + >>> + + + + + >>> Mohon saat meREPLY posting, text dari posting lama dihapus >>> kecuali diperlukan agar CONTEXTnya jelas. >>> + + + + + >>> + +Yahoo! Groups Links >>> >>> >>> >>> >> >> >> > > -- Each piece, or part, of the whole nature is always an approximation to the complete truth, or the complete truth so far as we know it. In fact, everything we know is only some kind of approximation, because we know that we do not know all the laws as yet. Therefore, things must be learned only to be unlearned again or, more likely, to be corrected.......The test of all knowledge is experiment. Experiment is the sole judge of scientific “truth”. - Richard Feynman
