BAD BABY T SHIRTS

The Little Book of Sideways Markets: How to Make Money in Markets that Go Nowhere (Little Books. Big Profits)

"It's hard to talk clearly about investing and make sense to ordinary readers at the same time. Katsenelson gives a lucid explanation of today's markets with sound advice about how to make money while avoiding the traps that the market sets for exuberant bulls and frightened bears alike." -- Thomas G. Donlan, Barron's

"A thoroughly enjoyable read. Provides a clear framework for equity investing in today’s ‘sideways’ and volatile markets useful to everyone. Clear thinking and clear writing are not often paired - well done!” -- Dick Weil, CEO, Janus Capital Group

"The bible for how to invest in the most tumultuous financial market environment since the Great Depression. A true guidebook for how to build wealth prudently.” -- David Rosenberg, Chief Economist & Strategist, Gluskin Sheff + Associates Inc.

"A wonderful, grounded read for new and seasoned investors alike, Katsenelson explains in plain English why volatility and sideways markets are a stock picker's best friend.” -- The Motley Fool, www.Fool.com

Praise for Active Value Investing

"This book reads like a conversation with Vitaliy: deep, insightful, inquisitive, and civilized." -- Nassim Nicholas Taleb, author of The Black Swan

Q&A with Author Vitaliy N. Katsenelson

What approach do you recommend taking in sideways markets?
What I propose in the book (and practice in life) is active value investing. Instead of being a market timer, I’m a buy-and-sell investor, with a focus on valuing individual stocks.
Find stocks that lie within your circle of competence, analyze them as to whether they meet your qualitative criteria (such as competitive advantage, strong balance sheet, high return on capital, shareholder-friendly management. etc.), value them, determine an appropriate margin of safety (discount to fair value, which should be increased in range-bound markets), and you’ll thereby arrive at a price at which you’d want to buy them.
If a stock trades at or below your buy price, buy it; if not, put it on your watch list. When the stock reaches your fair-value level, you don’t hold it, you sell it. Repeat this process over and over again.
What is one piece of advice you’d give to readers about investing in sideways markets?
An investor makes money from stock appreciation and dividends. Stock appreciation is driven by P/E expansion and earnings/cash flows growth. If you see an apparent catalyst (news or event) that will force P/E to go up – great! But in my experience I found that it is the apparent absence of a catalyst that creates an undervaluation. Wall Street is fairly short-term oriented, therefore if the stock is undervalued but there is no reason or a catalyst to help it go up in the next quarter or two, it gets dumped.
Here is what I propose. Buy stocks that grow earnings and pay dividends, this will put time on your side -- you are getting paid to wait.
Earnings growth is compressing P/E under the stock and dividends are a real time payment for your patience. If a company doesn’t grow earnings and pays little dividend, make sure undervaluation (potential P/E expansion) is significant, or there is a clear catalyst, as time is not on your side in this case. For instance, if you find a stock that is 20 percent undervalued, there is no catalyst, no dividend or earnings growth it is probably not worth buying.
What is a “don’t” when it comes to investing in sideways markets?
We need to shield ourselves from the outside world. I am not advocating moving into a cave with no electricity. But we should not allow the outside into our lives unchecked. If we do, the market will become our master, dictating what we do – which is the opposite of what we should be doing. I actively try to isolate myself from influences of the market. I found the most productive time I have is on airplanes, because I can write and think for hours; there is little interference by the outside world. I really try hard to only check the prices of my stocks a few times a day. I have not perfected this yet — we all have bad habits that it takes time to break. But if we are aware of the negative influences the outside world can have on us, there may be hope for changing our behavior.
I usually try to read newspapers and otherwise keep up with the news before I get to the office. Then I try (this is still an effort) to turn off the Wi-Fi switch on my laptop — this kills the internet, including email, Skype, IM, and RSS feeds. I try to recreate a plane-like environment at work. I don’t turn on the TV during the day. And when I do tune back in, I try to listen to more podcasts, and watch PBS more and business TV less. So to answer your question, I think we should create an environment where the outside world doesn’t change (shrink) our time horizon.

Lukash Hallard would leave the market with a new pack of red apples and a paperbag full of magazines and comics. The hauler stops by the door and fishes a stick out, resting it between clenched teeth while he patted his shirt pocket for the lighter

[ Libby Kayor looks over with and smile and wave at seeing Luk," morning.." hands reaching to adjust her hat then

Lukash Hallard looks up to the sky. Midian's constant bleakness had him often confused about the time . "iddis mornin'already uh?? wouldye lookit dat" he muses with a gruff chuckle

Libby Kayor 's blue eyes would look up too as also laughs ," yes Sir it would be morning.." quick glance to her watch confirms that fact. Attention turned back to Luk," so been out shopping have you.." taking an sip of her coffee as walking closer would offer out an bag of donuts if he wanted to take one

Lukash Hallard would look at his own watch. As usual he'd forgotten to wind it again. "yeah yenno...gotsa catch up on th'readin'n stuff" he lets out while patting the grocery bag he held close to his chest. The hauler refuses the donuts with a polite nod while his free hand was kept occupied flickering the zippo open to burn the cig that hovered between cracked lips.

Libby Kayor bringing the bag of donuts back toward herself she is not offend none where taken as more chocolate ones for herself. Head tipping some as not able to see what sort of magizines might be in the bag just smiles," well reading is good for the mind. Least is what my teachers used to tell me.." Libby never worried as her IQ is high enough." I was thinking of going to the beach and watchng the waves some." pausing then as remembers something," say can you tell me where does that bridge go that is over your place?"

Lukash Hallard suckles on the cig calmly, attentively listening to the girl while she speaks. The hauler nods once a question is asked, Luk was in a good mood - and loved making smalltalk with random peeps. "well it used ta lead ta Levi, now it ends up atta smelly swamp. Butchye dun'wunna go thear toots" he quickly adds warningly "dat place's full uv scavengers'n creatures like mutant crocodiles'n da like." Luk steps closer to her a couple inches, his solitary blue eye locked on hers while a smile crooked its way out of his scarred features "legend has it there's a fortune buried sum'wear below ovah thear..." he says at last, his gruff voice assuming an intriguing, storytelling tone now.

Libby Kayor ' eyes would grow large as she is told of creatures and scavengers. Libby trying to tell if the man is pulling her leg or not. Figuiring with what has seen so far in this city he might be true. Hearing of an treasure she is instantly intriged." like an pirants (sp) treasure?.." Libby far from needing credits but the thought of treasure instantly turning her mind to stories of romance and adventour," whoses treasure would it be? Would have thought someone would have found it by now. How you ever gone digging for it?.." the girl in her excitement asking alot of questions delicate features of face animated

Lukash Hallard chuckles at the girl's excitement...it had him on a gold rush as well. "fuck yeah toots! Ah've been there tons uv times diggin'..." and he would be there dozens of times over in the future, it was one of Luk's favorite hobbies "dug all ovah da swamp'n found nuffin'but bones...heck, p'raps ah wusn't diggin'deep enuf uh?" he adds with a playful wink of his good eye. "legend say on uv'da DuPlotte's great grand father hid'is treasure thear'jus'b'foar he knocked'is boots...noboddeh from da fam'leh confirms or denies it tho." except for Leor but heck, the woman was crazy anyways...

Libby Kayor makes note of the name as Libby will look and research it out later. Lips still curled into an excited smile would ask," could I go sometime when you do?." thinking as tall as the man is he could take care of any mutent aligrater that might pop up. If not Libby sure as heck can run fast. In her mind thinking of it as some kind of big adventour. She is already calculating an computer system of griding the swamp as Luk called it to give beter odds in where he might have dug. Face tipping up more then to look at the man," do not worry I would not want it if found. Well many an shinny thing or so. " As Libby like any girl likes the shinny things." Just sounds fun.."

Lukash Hallard: "will do dat toots definitely" he nods, happy to see there was someone actually willing to go treasure hunting with him. "we gotta getchye summin'odda din'em fancy clothes ye gots thear tho."

Libby Kayor looks down at her clothes as they are not as fancy as some she wears but what would expect as she has been dressed like an princess since day she was born." yes I have jeans and boots

January 30th, 2008 - *Best Viewed Large*

First off, I know my lip piercing is the wrong way. It's because of my Camera phone.
So, yeah, sorry about that.... ~

Oh. My. God. am I tired and cold. So, today was nuts. I went to bed around 7:30 this morning and woke up at 6:30 this evening. I sat around in the living room for a bit just doing nothing and then I went and wrote in my journal and then they came home. John and Mom finally came home from school/work and I was so happy to see them. John came walking up to the front door holding the mail box in his arms... O_O; he's all like "IT FELL OFF AGAIN, HAHAHAHA"

XD;;

So they came in and everything and then we sat around for some time. Then we got ready because John said he was going to go up to California University to stay with Heather until Friday, then they'd come back and stay here. So we bullshitted for some time and then we went out and went to the Library because we wanted to see if Liz would take him. We get out there 10 minutes before they close and we meet up with her. Then we walk out. XD; We then went to Borders and I must admit I was having a blast. John started picking up Magazines and he was holding them, so I knew he was going to put them on hold. I started bitching -- "well if he's aloud to put things on hold, I'm aloud too!!!!", My mom just looked at me and was like "whatever".

So I went and got like 5 or 6 Magazines and then John wanted to head back to the Manga/Anime section, so we go back and I end up picking up 4 Manga's all various prices. I also picked up a keychain thing because it looked cute. So we're looking around, mind you I was doing video on my cell phone. The service is shut off but it's still good for videos and photos. So I'm looking around and I saw a Valentines Day Beanie Baby Heart Teddy that I fell in love with. So I picked that up too. I think that's all but yeah.

I am sooo glad they had little baskets that you could put your stuff in, or else I would've dropped everything. So after Borders, Liz turns around and she mentions that she needs to go get groceries from Shop N' Save. -.-; So we go there she does her shopping and then we're in the checkout and the manager and bagger boy are giving us werid looks like we were shoplifting or something....


O_O;;;; WHAT THE FUCK?!?!
We had problems with them before, me and John were hanging/playing on the shopping cart thing outside and the bagger boy got the manager and shit. We didn't get bitched out because we got off it before the manager came outside. We acted like we weren't doing shit. XD;

But anyhow, we left Shop N' Save and we went back home. Where Liz just HAD to get on myspace to see The Bravery's profile. -_-; She wastes so much money on bands she doesn't even know. Like, she'll hear ONE song off a new band and she'll instantly go and buy the WHOLE damn CD. She's weird like that. She buys magazines and claims she's "such a big fan" of so and so and then whenever their song comes on the radio she doesn't know ANY of the fucking lyrics. It drives me insane. She flaunts her money like it'll save her in a battle of war against enemies. She's one fucked up cookie that needs to be thrown away before anyone gets sick by "eating" her.

But yeah, so we only wasted like an hour waiting for them to get off the computer so we can go up. When she finally did get off they were bitching at John for getting off his laptop.

I find it funny that they can waste all the time in the world on a stupid band's profile and then when John gets on the computer for 5 minutes they flip. Why is that?!

So, we all get in the car and we head out. To make a long story short, we got lost. We had to get off on exit 75 and we completely missed it. It turns out we went all the way up to exit 91 and then finally realized something was wrong. So we turned around and Liz kept being a douche and mom kept being a douche. The only one that wasn't being a douche was John. He just about had it when Liz kept pulling her "I can't read that" stunts.

We went on the TURNPIKE! The turnpike people. There were tracker trailers out the ass on the turnpike and I kept getting a little worried because they got so close to my door. >_<; But yeah, Liz would slow the car down when she'd see a sign or an exit or whatever. Meanwhile we have tracker trailers behind us that want to keep moving and she's slowing down to read some sign that wasn't involved with our exit. What a dumbass.

Mind you, Liz isn't a cool, hot 19 year old. She's a 58 year old who obsesses over Trent Reznor and fucking Nine Inch Nails. God, I'm so sick of hearing:

"oh yeah, I pulled up this one picture on google and like, Trent was wearing such tight pants and you could see everything"

shut the fuck up right now. I am not and will never be interested in Trent Reznor or his stupid ass band Nine Inch Nails. I'm sorry, they just suck t