Feb 2014
While the long-term trend for the economy and stock prices has been—and remains—upward, it is virtually impossible to predict short-term swings in stock prices before the fact. The only realistic way to outperform, say, the S&P 500 in more normal environments is to selectively invest in good companies selling at attractive prices. This is much easier said than done, because the stocks of good companies seldom trade at bargain prices, and there are always false bargains among companies destined for poor operational performance.