How do you arbitrarily choose March 1st 2000 to start your comparison? And why on earth would you compare a REIT index to the DJIA? What is that supposed to clarify? What is their relationship? I bet you are a proponent of technical analysis and a big purchaser of body building supplements.
If people have to ask for investing advice they don’t have a clue what they are doing when it comes to investing. If people give investing advice they don’t have a clue what they are doing when it comes to investing. If people are trading they just don’t have a clue.
A) Just a couple of days before the tech bubble burst and corresponding market collapses. I don
t give a shoot how a portfolio behaves in rising markets. Backtesting with historical slumps prevents one from succombing to thebuy at the top euphoria, sell at the bottom` pattern.
Then again, why shoud anyone buy at the top, unless he
s trying to go for momentum and market timing (if thats your case, good luck, I don`t believe in it).
B) OK. Name me one index that is representative of the real estate market, then. I chose that one from Swensen
s book. I compared it the to DJIA to show people its 6-to-1 runup in the last 6 years. Now it that currently isn
t overvalued, I dont what is (except gold).
C) Technical analyst? Almost. I
m more of alazy portfolio
investor, buy-the-whole-market, if you cant beat
em, joinem index invesor. Big buyer of supplements? Too bad for insinuation, but nope.
D) In general, investors don`t have a clue with regards to timing in my book. The Average Joe has a 2.3% annual return on his total investments.