Thursday, March 29, 2007

Interesting Take on Entrepreneurship

This article is interesting because it reflects the changes in perspective regarding Entrepreneurship. It draws some interesting comparisons regarding the old and new ways of thinking when it comes to starting your own business.

Mastering the New Entrepreneurship
http://finance.yahoo.com/expert/article/careerist/27680

2 comments:

TakeStocK said...

Greg, We are in the earning season and the funds are all in all time high NAV . Is it a good strategy to reduce the focus on the funds and move some % to short term money market? Then use the money accumulated in the money market to buy back the regular funds when they are low?

GregB said...

First, let me say... thanks for the feedback.

Rather then implementing short term shifts in asset classes based on NAVs, I urge you to maintain your current porfolio and not shift funds to the money market within context of a long-term investment plan.

My thoughts on asset class (or sector) rotation is that you want to determine that the long term prospects for the sector do not look good (forcing it to be over-valued) or the prospects are improving (meaning that it is currently undervalued). Simply focusing that the NAVs have hit all time highs in funds alone is not enough of a indicator to reduce your fund allocation and move to cash in an attempt to time the market by buying them back later. The other thing to keep in mind is that most market timers fail (to beat buy & holders) unless they have a long term plan based on firm market statistics.