04-01-2014, 04:06 PM
(This post was last modified: 04-01-2014, 04:07 PM by Dividend Watcher.)
Good point, Eric. I never have either but I guess I wasn't clear enough in my post.
The thing that irked me was the idea of ruling out companies that would "tend to fall further than the broad market index". Unfortunately, the statistic that best shows this tendency for both a rising and falling market is beta hence using it interchangeably with "tend to fall further than the broad market index". That was the lazy man's way out of all that typing.
The gist of the article was that if you're going to rule out stocks that "tend to fall further than the broad market index", you may be missing out on some very good long-term holdings. Perhaps a better title may have avoided some misunderstanding.
The thing that irked me was the idea of ruling out companies that would "tend to fall further than the broad market index". Unfortunately, the statistic that best shows this tendency for both a rising and falling market is beta hence using it interchangeably with "tend to fall further than the broad market index". That was the lazy man's way out of all that typing.
The gist of the article was that if you're going to rule out stocks that "tend to fall further than the broad market index", you may be missing out on some very good long-term holdings. Perhaps a better title may have avoided some misunderstanding.