Buy cheap and sell expensive?

Callum_Thomas
05-05

When people talk about using #Valuations for market timing, it's often presented in black and white "buy cheap and sell expensive" terms

But life is not black and white, it is nuanced, grey, noisy and complicated. $S&P 500(.SPX)$ $SPDR S&P 500 ETF Trust(SPY)$ $NASDAQ(.IXIC)$ $Invesco QQQ(QQQ)$ $NASDAQ 100(NDX)$ $DJIA(.DJI)$ $GLOBAL X DOW 30® COVERED CALL ETF(DJIA)$

  • Buy cheap, and you might get a value trap.

  • Sell expensive and you might get left behind.

Here's how I think of it (the visual below), and yes, again there are always going to be exceptions and it's always going to be harder than the conceptual model, but you have to have some sort of framework as your starting point... and then build the indicators, datasets, and experience from there.

ImageImage

https://twitter.com/Callum_Thomas/status/1786494343005556760

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • LeilaLynch
    ·05-06
    The stock market is indeed complex and dynamic.
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  • familoveyou
    ·05-06
    Interesting perspective.
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