|Stocks & Mutual Fund Information|
When you stand on the ocean shore and watch the waves breaking you might become aware that the tide is coming in or going out. It is a slow process to watch the water retreat and when it finally gets to its lowest point it is almost impossible to tell if it has stopped or will retreat further. Plenty of wave action, but going nowhere.
This reminds me of our current stock market. It still looks like the tide is going out because for the last 2 months all the major stock indexes have been inching down. Even the talking heads on CNBC are saying you must be cautious. They would be fired if they told you to sell. How can you tell what is gong on? Almost every analyst and broker looks at the major market indexes ? the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Index. On the surface they look very negative.
The DOW is composed of 30 large companies. The S&P500 has 500 companies of many sizes, but the number (index) generated is weighted by the size of the company. The bigger it is the more it affects the index. And the Nasdaq is smaller companies and have more of the high tech corporations that have been hit so hard and are still having mucho trouble. The professional traders and mutual fund managers relate more to the S&P500. Almost all domestic stock mutual funds have been lower in price for the first quarter.
Even though the S&P has been slipping it is interesting to note that 300 of the 500 stocks that make up the index are HIGHER. Yes, 60% of them have continued to advance, but it doesn't show - yet. When a market is changing directions it is similar to watching the tide stop going out and slowly change. That is what is going on now. The wave action is there, but you can't see that the body of water is now beginning to move the other way.
There are some strong underlying currents such and the Small and Midcap Value stocks, Real Estate stocks, the Leisure group and Financials. This applies to picking individual issues as well as buying mutual funds that specialize in these areas. If you want to be successful ? make money ? in this market you must be with the strongest group so you must switch from weak stocks and mutual funds to those that are currently strong. Fund managers tell you to look at the 3 and 5-year track record and "stay for the long haul". All that does is make money for him, not you. You must find the no-load mutual funds that are going up the fastest during the past 3 and 6-month time period and buy them now.
The only way to Buy and Hold is to buy and hold only while they are going up and to sell them immediately when they start to decline. Don't let the weak stocks or funds carry your cash out with the money undertow.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.
Trading For A Living
How many times have you said to yourself, "I'd like to quit this job and just make a living trading in the stock market"? Well, maybe you can, BUT...
What is a Mutual Fund?
Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the "investment adviser."
Its A Duck
If it walks like a duck, quacks like a duck and looks like a duck it must be a duck.
Box Of Chocolates
Ever have one of those sample boxes of candy? Each little piece is beautifully wrapped in colorful foil or decorated with an interesting design. Taste just one. So good! One more. And another. Before you know it the box is empty. Nothing left.
How to Pick Winning Stocks
There is nothing more exciting than finding an undervalued stock and seeing it explode out of nowhere rising in value 100% or more in a few weeks. Some stocks can move as much as 1000% in a year and?. Even after the stock market crashed in 2000, some stocks still have gone up 500% or more in a year.
One of the great "secrets" of successful people is discipline and it doesn't make any difference whether it is manufacturing, processing, servicing or investing in the stock market.
Bad News is Good News
For weeks, no, months we have been bombarded with nothing but negative news about the economy in general and thousands of individual companies. The stock market has dropped thousands of points and more than $8 trillion in paper assets have disappeared.
Dollar Cost Averaging
Dollar cost averaging is one of the most popular ideas in the investment community. Everyone seems to like it and it has become a watchword among stock and mutual fund brokers. If it is properly done you will make money, if not you will lose money or at best stay even. Let's examine the basic premise behind this method of investing.
The Great Stock Market Secret
When the stock market is going up and all your stocks and mutual funds are making money you feel like a genius. It is too bad that some folks don't remember what happened in 2000. Of course, right now we are in one of those genius phases.
One Way Street
Ever turn down a street, get half way and suddenly realize it is one way and you are going the wrong way? Is that the way you feel when you look at your stock brokerage statement?
Lemmings Are Gathering
Before they go over the cliff to their destruction these little furry ones get together for a party and celebration. Each tells the other how smart he has been with his investments and buying and selling of stocks and real estate.
Just 30 years ago the stock market was a shadow of what it is today. There were many fewer shareholders and the daily volume was a fraction of what it is at present. No one thought you would every be able to trade a billion or more shares in one day. Of course that was in the old days when they had tickers and the word digital was something you did with your fingers.
During our travel down life's path we come to many places where the trail divides and we must make a decision. Some involve psychological (emotional) choices ? marriage, divorce, leaving home, career changes, etc. Others are monetary ? buying a new car, home, starting your own business, investing, etc. Many are interwoven having aspects of both psychological and monetary.
For the year 2000 we have seen hundreds of mutual funds lose 40%, 50% and more of their value. This does not seem right since the fund is supposed to be managed by a professional. How can this "professional" do such a bad job? More than half of the funds this year will not out perform the S&P500 index which closed down about 10%.
Today we are inundated with tons of information about the economy, stocks, government agencies and foreign governments. They show us charts and graphs of the increase/decrease in oil production over the last 5 years, the amount of maple syrup produced in Vermont for the past century, the time it takes to bounce a signal off the moon and all kinds of other nonsense that we can live without. The talking heads on the investment programs, both radio and TV, tell us how this is going to affect the price of certain stocks and the market in general. Well, maybe.
Shorting Stocks ? The Basics, Part I of II
What does it mean to short a stock?
A Stock Market Investment Strategy
I feel that an investment strategy in the stock market can instill in the individual investor not only an assured confidence in all future stock market investments, but also an almost Zen-like sense of peace and well being. A stock market investment strategy spelled out, proven, and instilling within the investor the power to succeed in the stock market with an assured confidence.
How To Beat The Mutual Fund Companies At Their Own Game
You'd have had to be living on a desert island with no TV, newspaper or internet connection to have missed hearing about the great mutual fund scandal of 2003.
Trading Tips No 6: The High Cost of Low Cost Stock Market Information
It has been said that low cost or even free stock market information or trading advice can be the most expensive advice you can get. The meaning is clear. You get what you pay for.
Rebalance And Diversify
The stock market has not been very kind to your investments lately. Your broker knows this so you may have received a call from him suggesting it is time to 'rebalance and diversify' your portfolio.
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