Wall Street fecha semana em alta. S&P 500 e Nasdaq atingem recorde

[Ulisses Pereira]

Howard Simons

"Thirst For Growth "
10/07/03 02:21 PM ET

"JJC's post nearby on mutual fund behavior highlights a couple of important points:

1. While you can have good businesses with good stocks, you can have mediocre or even non-existent businesses with absolutely terrific stocks. That must drive fundamental analysts crazy, and if it doesn't, it should.

2. Mutual funds' interest are not at all aligned with those of their investors. Their losses are limited to foregone management fees after they hand you big losses. Asymmetry of risk. Your time horizon as a fund investor should be close to your life expectancy; their goal is to look good in the newspaper tables the next day and in the end-of-quarter rankings. You're paying them to trade in a manner non-aligned with your investment horizon.

3. Stocks are unbounded in their valuation. Put the price of a bond, a commodity or a currency too high, and buyers disappear. Stock traders line up to buy more with the certainty the greater fool is elsewhere.

4. Hedge fund traders selling moonshots are not smarter than you and me, they just are paying less attention. In every move higher, the top was bought by a professional, not by an amateur. Draw your own conclusions from their behavior. "

(in www.realmoney.com)