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I'll try to take a look.

 

The best news for selective stock investors in my opinion are index funds and ETFs. While many people appear to be investing in them, and while I certainly advocate in many contexts (for less engaged investors) using them, what they represent to me is Big Dumb Money as it flows in (and out) of whole sectors. Whole sectors, without much regard for the stocks in them. That causes a whole tide to rise or fall, again, without much selectivity happening at all.

 

Investors who are skilled at recognizing winners from losers -- Netflix, instead of Blockbuster, as I'll put it -- get helped even more by this Big (and it is big) Dumb Money.

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The Lemming thing has its good points and bad points.

 

The market does tend to follow in trends, leading to grossly overvalued and grossly undervalued stocks.

 

I think it is the lemming thing that enables us to find those undervalued stocks, and often that requires going against the market.

 

Currently I think the market is hot on gold and many gold stock are grossly overvalued, but it is bearish on copper, all copper, regardless of fundamentals.

 

I'd love it if you looked at my blog let me know where my thinking might be wrong, and if not, perhaps a hidden gem?

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I'll try to take a look.

 

The best news for selective stock investors in my opinion are index funds and ETFs. While many people appear to be investing in them, and while I certainly advocate in many contexts (for less engaged investors) using them, what they represent to me is Big Dumb Money as it flows in (and out) of whole sectors. Whole sectors, without much regard for the stocks in them. That causes a whole tide to rise or fall, again, without much selectivity happening at all.

 

Investors who are skilled at recognizing winners from losers -- Netflix, instead of Blockbuster, as I'll put it -- get helped even more by this Big (and it is big) Dumb Money.

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David,

 

You have just made a great comment.

From now I will call you David 2.0

 

Julien

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Are lemmings related to penguins?

 

How do you tell a smart lemming from a dumb lemming?

 

TMFBent, I think, is more of an en emperor penguin. In a good way, of course.

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Ralph Wanger chose zebras to characterize the herding behavior in the investing world. He pointed out that the zebras that are unafraid to "live on the edge" of the flock get to the water first and dine on savanna grasses that are less trampled and soiled. Sticking to the middle has its advantages, first and foremost among them being that an inner-pack dweller is less likely to be dinner for a predator. Most of the institutional crowd are motivated by an avoidance of becoming said dinner. Foolish investors aren't afraid to hang out on the edge -- one of the reasons that Hidden Gems and Stock Advisor achieve the results they do. Kudos to extending the sharing and herding to new levels with new vistas of CAPS-based potential -- bringing us resources like the venerable Eldrehad and HumbleServant and Seth and countless others yet to be discovered and shared for the benefit of the Foolish herd.

 

Mark Robertson

www.manifestinvesting.com

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