Waiting For News

In my previous column, I mentioned that getting your investment ideas from financial channels and the business section of newspapers and magazines is really a painful path to follow in the money game.

There's a great example occurring right now. Check out the front cover of most financial magazines, business newspapers — and even the promotional bits for the financial news channels. Everyone's talking about the mortgage mess/the subprime meltdown.

It's certainly a hot topic today.

But the charts of the mortgage companies were melting in the fourth quarter of 2006 in the first quarter of this year. Back then, those charts were screaming "get out now!"

We had very clear signals — but what we did NOT have was news. And nine and 10 months ago, not too many people had an inkling that some of these mortgage companies would be filing bankruptcy before the end of 2007.

But that's indeed what happened. And if you waited for the news before making your decision, you got wiped out.

By the way, we welcome comments, and invite you to respond with your thoughts about this on our blog.

Tom

Thomas Mullooly
Mullooly Asset Management LLC
Our Only Business Is Fee-Only Investment Advice
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