Today my "losing streak" was finally broken. A positive day for many in the market. You can count on that the market will fluctuate. While some may be "gifted" enough to know which way the market is going short term, most investors and traders do not know day to day how the market will go. It is a certainty that on many days news will drive the direction of the market. I am intrigued almost daily by the headlines that attribute the markets rise and fall to some obscure event.
More evidence that the behavior of some "experts" can be no riskier than that of the individual investor going it alone. According to a report from Marketwatch, Sowood Capital Management LP, a hedge fund firm that had more than $3 billion in assets, told investors on Monday that its Alpha funds lost more than half their value this month amid turmoil in credit markets. You can read the story for yourself my clicking on Marketwatch above.
It is interesting to note that the Sowood meltdown is attributed to a widening of spreads in the corporate loan market as opposed to the subprime mortgage market. Could this portray more of the same ahead?
While today was promising with the market up on heavy volume, I still stand by my strategy of investing of the long run.
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