"It's not a F*ckin Game!"

For those of you who haven't seen the Jon Stewart vs. Jim Cramer Interview on the Daily Show, here's the link: "Get Ready to Buy Low! and Sell Die"

In the cordial discussion between Jon Stewart and his guest, Jim Cramer (financial analyst on CNBC), Jon points out how the financial goals of the Buy and Hold Investor are in direct conflict to the short term trading investors. Jon shows Jim several clips from Jim Cramer wherein Jim enumerates the different manipulation practices of hedge funds to achieve their short term trading goals.

To this Jon Stewart responds "It's not a F*ckin' Game!"

The problem that I saw with the interview is that "Wall Street Traders" or "Short term traders" were lumped in with "hedgefund manipulators" or "backroom dealers" or cocaine users or hookers.

Question: Is a Long term investor more noble than a Short term investor?

Answer: The length of the holding period has nothing to do with it. The key is, is the person or company an investor or gambler. An investor is an individual who does their homework and responds to those results. If as a short term trader (holding period of a few minutes to a few weeks or months), I respond to news and technical indicators and place a trade, then I've done my homework and I am an investor. If as a long term trader (holding period of 1 year or more) I throw a dart at a list of stocks and buy ACME company, because that's where my dart hit, then I a gambler not an investor. As a gambler then, if I lose all of my money, then I shouldn't be crying for the government to fix it or have the short term traders vilified because they made money on their homework.

Jon Stewart is right, "It's not a F*ckin' Game!". Long term investors need to stop thinking they can buy a stock and never stay on top of it. I know people who spend more time researching the best flat screen TV to buy, then they do studying the companies that they want to buy stock in.

Is stock manipulation wrong? Yes, and those who do it should be prosecuted for not playing by the rules. Are short term investors at fault for causing the downfall in the market? No. Are long term gamblers at fault for causing the downfall in the market? Yes. Are short term gamblers or manipulators at fault for causing the downfall in the market? Yes.

Remember, the length of holding period of any asset (gold, real estate, stocks, bonds, classic cars, tulips, etc.) is not the problem.