Saturday, September 1, 2007

"Long"-term market thoughts

It is important to note the difference between a "Trader" and an "Investor". A trader profits in the short-term (a few days), while an investor profits in the long-term (over years). This difference in time necessitates different strategies.

Right now, I am a trader when it comes to my brokerage account, but I have also invested a portion of my salary into a 401(k). When I blog about my accounts ups and downs, I refer to my brokerage account, in which I am short-term.

So as a trader, long-term for me is probably about 2-3 weeks. In that time span, I expect the market indexes to continue pressing upward, spurred on by a Fed Rate cut on Sept. 18th, as well as improving home sales and mortgage environment.

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