Thursday, October 30, 2008

Paper Loss? Yeah, Right

It's a huge folly when people are saying that unrealized loss is a "paper loss" only. Come on, IRS does make a distinction, we shouldn't. We gain or lose whatever we do, no matter if we sell or cover. So, looking at your account, remember: what you see is what you have, minus commissions to close positions.

Jim explained today that unexpected rally this week is from mutual funds rotating part of their money into stocks. Well, that explains something. He doesn't believe we are past bottom. I don't believe it either. There are way too many people declaring bottom already. Real bottom happens when almost everybody thrown the towel.

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