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Buy high, sell low

I stumbled across this January 27, 2o14 video by Jerome Corsi titled: “Take Retirement Money out of Stock Investments ASAP!” In the video Corsi advises:

I’ve been warning for months that the stock market bubble we’re in is going to burst. … Right now, get out of any stock investment that you have in your retirement fund. … Sell your stock fund now. Listen to my advice.

His more nuanced complete narrative advises moving all ones funds from stocks to bonds and money market funds. He doesn’t say when the bubble will burst, only that it will. One of the valid points he makes is that one might make this move for “peace of mind.” Of course, Corsi is doing his best to disturb the peace in the video.

The Dow Jones Industrial Average closed at 15,837 on January 27, and today at 17,137, up 8.20%. Bonds didn’t do nearly as well. I suppose if one waits long enough, the stock market will eventually go down, but so far this is not the year for that.

Anybody can be wrong, but Corsi seemed so sure!

My favorite YouTube title is: “Interview with Jerome Corsi who really killed Kennedy.”

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20 Responses to Buy high, sell low

  1. avatar
    Birther Weary September 5, 2014 at 10:58 pm #

    What could be more secure than a money market account paying .1% annually (before taxes)? After five years of such stellar returns, you could have made enough to buy a Happy Meal and still get change.

  2. avatar
    JPotter September 6, 2014 at 1:23 am #

    This may shed some light on Corsi’s failed investing advice career.

    Or not.

  3. avatar
    Joey September 6, 2014 at 3:40 am #

    If a person had bought 100 shares of Tesla Motors stock in 2010 at the time of its Initial Public Offering at $17 dollars a share (a $1,700 purchase) they could have sold those 100 shares today at $277.39 a share ($27,739).

  4. avatar
    Notorial Dissent September 6, 2014 at 7:06 am #

    If you wouldn’t buy a birth certificate from this man, why would you take financial advice from him???

  5. avatar
    Dr. Conspiracy September 6, 2014 at 7:17 am #

    Warren Buffett’s company, Berkshire Hathaway, is up 22% since Corsi’s video. That stock has averaged over 19% a year for the past 49 years.

    Speaking of big returns, I just got a check in the mail from Fidelity Investments yesterday for three cents.

  6. avatar
    Arthur September 6, 2014 at 8:19 am #

    Joey:
    If a person had bought 100 shares of Tesla Motors stock in 2010 at the time of its Initial Public Offering at $17 dollars a share (a $1,700 purchase) they could have sold those 100 shares today at $277.39 a share ($27,739).

    Speaking of IPOs, is anyone planning on buying shares of Alibaba?

  7. avatar
    Reality Check September 6, 2014 at 9:31 am #

    Giving bad investment device must be a Birther trait . Karl Denninger has given some infamously bad advice in on his blog. I have seen blog posts making fun of his missing out on the bull market in gold in the 2000’s, I think he also predicted that a President Obama would quickly cause the economy to crater.

  8. avatar
    Majority Will September 6, 2014 at 9:47 am #

    Didn’t that jackass get a Ph.D in FUD?

  9. avatar
    Rennie September 6, 2014 at 10:05 am #

    I had some entertaining exchanges on a local newspaper forum with a guy who titled his thread “Tracking the US Collapse” starting in 2008 (coincidentally started just after Obama was elected). He kept telling us that anarchy would descend Any. Day. Now. and to get our guns ready, buy gold, and stock up on food. He always had some date on which the big collapse would happen, then he’d have to backtrack and start again when that date passed. The forum died a couple years back, otherwise I’m sure he would still be peddling his “just around the corner” predictions.

  10. avatar
    alg September 6, 2014 at 10:15 am #

    Corsi is in the business of selling stuff he makes up. His customer base is composed of serial RWNJ’s who don’t own enough brain cells to remember how wrong he was the last time they bought something from him. Unfortunately, there will always be a steady market demand for his wares.

  11. avatar
    Bob September 6, 2014 at 12:07 pm #

    Ultimately there’s no difference in pretending that you’re stupid and really being stupid.

  12. avatar
    realist September 6, 2014 at 2:24 pm #

    Not so sure about the Happy Meal purchase, Birther Weary. You did not take inflation into account. 🙂

  13. avatar
    Birther Weary September 6, 2014 at 3:32 pm #

    alg:
    Corsi is in the business of selling stuff he makes up.His customer base is composed of serial RWNJ’s who don’t own enough brain cells to remember how wrong he was the last time they bought something from him.Unfortunately, there will always be a steady market demand for his wares.

    No one has ever lost money targeting that market.

  14. avatar
    MN-Skeptic September 6, 2014 at 4:10 pm #

    Every week you can find a financial analyst predicting a major downturn in the stock market. Any. Day. Now. At some point, there will be a market correction and then they will point out that they were one to predict this.

    So I ignore them all.

    Low cost index funds. Asset allocation, rebalancing once a year or so. Stay the course. Check out http://www.bogleheads.org/.

    I left my former employer in 1999, kept my 401(k) there until a few years ago. The basis in my former employer’s stock? $4/share. Value today? $60/share. Good old American company. 🙂

  15. avatar
    MattR September 6, 2014 at 4:31 pm #

    Not to defend Corsi, but the thing about bubbles is that they are created by irrational investors so it is much easier to identify the existence of one than to predict the exact day it will pop. If someone can provide persuasive facts that there is a bubble (which is one place where it seems that Corsi fails), it is not necessarily unwise to pull your money out and lose out on the a potential 20% increase over the next year if you believe there is a good chance it will be followed by a sharp 50% decrease shortly after that. (OTOH, if you can make 20% a year for 5 years before the bubble bursts, you still end up ahead if the investment loses 50% of its value)

    As an example, how upset would you be with someone who knew Enron stock was artificially inflated and warned you away from it in early 2000 after it jumped from 45 to 70 knowing that it continued to climb to 90 in August 2000 but then dropped sharply in late 2001, hitting single digits in October of that year? Sure you could have made close to 30% if you sold it at its high, but would you have actually done that or would you have held it since it was hanging around in the high 70’s or low 80’s (it was still at 80 on 2/14/2001) and ended up selling it at a loss once you finally realized it was not going to bounce back?

  16. avatar
    Keith September 6, 2014 at 8:38 pm #

    Bob:
    Ultimately there’s no difference in pretending that you’re stupid and really being stupid.

    Quote of the day material, right there.

  17. avatar
    ZixiofIx September 7, 2014 at 3:44 am #

    If it’s all the same, and as much as I respect Jerome Corsi’s investment advice, (Bwahahahahahahahahaha! ::gasp:: hahahahahahahahahahaha!) I’ll leave my money where it is.

    Assuming that there is an overall market correction, the ability to buy low afterwards is awesome. If you are in it for the long term, you can worry much less about corrections, and see them for the opportunities they are.

  18. avatar
    Rickey September 7, 2014 at 10:45 pm #

    Rennie:
    I had some entertaining exchanges on a local newspaper forum with a guy who titled his thread “Tracking the US Collapse” starting in 2008 (coincidentally started just after Obama was elected). He kept telling us that anarchy would descend Any. Day. Now. and to get our guns ready, buy gold, and stock up on food. He always had some date on which the big collapse would happen, then he’d have to backtrack and start again when that date passed. The forum died a couple years back, otherwise I’m sure he would still be peddling his “just around the corner” predictions.

    I have a book called “Death of the Dollar” by William F. Rickenbacker, who wrote for National Review and was the adopted son of WWI flying ace Eddie Rickenbacker. The book was published in 1968 and warned about “the coming financial collapse.”

    Predictions of doom remind me of my grandmother. Every year she would visit us at Christmas and every year she predicted that it was going to be her last Christmas. Eventually her prediction came true.

  19. avatar
    Rickey September 7, 2014 at 10:49 pm #

    “To make money, buy some good stock, hold it until it goes up, and then sell it. If it doesn’t go up, don’t buy it.” – Will Rogers

  20. avatar
    The Magic M (not logged in) September 8, 2014 at 5:07 am #

    Dr. Conspiracy: Speaking of big returns, I just got a check in the mail from Fidelity Investments yesterday for three cents.

    I bought a heap of my company’s shares when we entered the stock market in 2000. They have plummeted to 1/5th of their original value, costing me a whopping 18,000 EUR in the process. Not counting the value of lost stock options that were part of my contract.

    Not that my company isn’t doing well, it’s just not very interesting for investors since we don’t do much but yield a small profit every year.