No. of Recommendations: 0
As if the downer year of 2008 wasn't enough, the almost total loss on Satyam shares shows the danger of "buy and hold" thinking. True, it's hard to pick tops or bottoms, but I would rather err on the side of caution and go to cash when the economic forecast says a recession is coming. In a weak economy with even more downside risk, I'm not interested in a company that carries more debt than cash. If there is any question about the stability of a company, it's better to have a stop loss in place than to "buy and hold".
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