Peter Lynch, 66, the legendary fund manager that run the Fidelity Magellan Fund with spectacular sucess, gave an interview to Globes where he discussed his outlook for stocks:
"The past decade is one decade out of a hundred years in which in which we have known the markets. We started at an extraordinary peak in the stock market as a result of the sharp rises in 1999, but in a sense the past decade was the lost decade on the stock market mainly because stocks were overvalued"
Interestingly enough, Lynch said that nobody can predict the stock market in any given year:
"I will tell you the same thing I would have said 10 or 20 years ago as well. To predict the market`s direction in any given year is a completely random act. You can`t know what the markets will do in a period of 6 to 12 months"
When asked about what is important trait for making money in the stock market, Lynch added,
"The most important organ in the body as far as the stock market is concerned is the guts, not the head. The stock market looks to the future and nor to the past. The tendency of people to run when the situation is bad and go in only when it is good is a good formula for losing money"
Lynch is bullish on stocks for the next 10, 20 and 100 years, "I think it will be a good place to be in 10, 20 and even 100 years to come".
Today Peter Lynch is a research consultant at Fidelity Investments.
Related ETF`s: SPDR SP 500 (ETF) (SPY), ProShares UltraShort SP500 (ETF) (SDS)
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