“Speculators, meanwhile, are said to be shifting into Dow stocks and out of gold in order to increase their short-term results, which are the only results they are interested in.” The Daily Reckoning
I can’t even emphasize how much I see this to be true.

Ever since early in the previous century we have all had this drive for speed, for change, for action and for growth. In the 1920s it was the radio, the came TV, followed by unbelievable conceptions such as nuclear energy, (bullet trains), computers and wireless technology.

But what we have done at the same time was spoil the minds of men. One no longer had to invent to become wealthy, he must merely innovate. Make something better, make it faster. This is what we have come to know. We try, we change, we achieve. On TV a show begins, there’s a crisis, and then its over. This is why many can’t understand the war on terror. They don’t see an end and that leaves them discouraged.

Today, its changed once again. Its neither about invention nor innovation but about integration. Bill Board plus Internet = Google. Digital technology plus Radio = XM Radio.

Its no wonder that nowadays Brokerage Houses are doing so well. Day Traders. Day Traders used to mean someone who actively watched particular stocks and attempted to configure a pattern in the buyers and sellers. Today, it’s all those who buy Cisco and joespizza.com because they “may-become-multi-millionaires-if-this-thing-goes-through-the-roof”. Its all a hype.

But it will end. At the end of the day Growth stocks may go up, but Value stocks must go up. But Value investing takes time. Lots of it. Investigating everything about the company (not the stock) you are about to buy like an active board member searching for an acquisition.

“Immediate results”. “High-Speed”. “Instant Trades”. “Get Rich Quick”. “Penny Stock”. (I must mention stock splits). These are all the words that just tickle or fancy. They make us believe with blind faith in some boiler room group of individuals who are actually there to “help us” make money.

So let them all keep invest in the Dow, hoping to get a piece of all the action. Good for them. Have fun, just not with my money.

I once heard a great quote “Timing isn’t everything. Time is everything”.


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