Podcast
Questions and Answers
When should you consider selling stocks according to the text?
When should you consider selling stocks according to the text?
- When the stock is overvalued or when you want to hold stocks for life
- When the market is valuing the company strangely or when the bull market ends
- When you think the bull market is ending or when valuations become extreme (correct)
- When you think the bear market is starting or when the stock is overvalued
What is mentioned as a reason to sell stocks when valuations become extreme?
What is mentioned as a reason to sell stocks when valuations become extreme?
- It's a good time to buy more stocks
- The market is valuing the company strangely
- The stock is overvalued
- The stocks can top out well before the bull market ends (correct)
What is a sign that a bull market is getting over according to the text?
What is a sign that a bull market is getting over according to the text?
- Stocks start declining by 50-90% (correct)
- Good stocks are down by 50% and bad stocks are down by 95%
- Stocks start increasing rapidly
- Valuations become extreme
Why does the text advise holding only certain stocks during a bear market?
Why does the text advise holding only certain stocks during a bear market?
What example is given to illustrate the importance of timing the last leg of the bull market?
What example is given to illustrate the importance of timing the last leg of the bull market?
Flashcards
Why sell stocks when valuations are extreme?
Why sell stocks when valuations are extreme?
Stocks are often sold when valuations become extreme as they may peak before the end of the bull market, potentially resulting in significant losses.
What indicates a potential end of a bull market?
What indicates a potential end of a bull market?
Stocks may start to decline by 50-90%, indicating a potential end to the bull market.
Why hold only certain stocks during a bear market?
Why hold only certain stocks during a bear market?
When a bear market occurs, it's often advisable to hold only high-quality stocks because they typically decline less than stocks that are considered poor investments.
Why is timing the end of a bull market important?
Why is timing the end of a bull market important?
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What example illustrates the importance of timing the end of a bull market?
What example illustrates the importance of timing the end of a bull market?
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