| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
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 realestate. Wait a minute. Did I say lemmings? I think Imeant investors. It seems they had that sameparty in January 2000 and it was a doozy thatlasted for several months. A great time was hadby all. They did not have one in 2001 asmembership dropped off. Nor again in 2002 and by2003 there wasn't anyone around at all. The lemmings (oops, investors) had gone overthe cliff. And they were such nice little guystoo. The few at their party who tried to preachcaution were drowned out with loud squeals thatthe market was going to 40,000 or maybe higher. This new crowd said it will never happen tothem as they are not going to put their money inthat risky stock market. Oh no, there is areally safe investment that always goes up -real estate. There is only so much land and nomore is being created. The population isexpanding so the demand will continue and pricescan only increase. Even for the novice speculators there is aplace to make big bucks. They are joining realestate clubs just like the old stock marketinvestment clubs to which they have previouslybeen members. Put in a few thousand and watch itgrow as the real estate market keeps going upand up. These investors know they are on theverge of great expectation that will meanwealth. Wealth without work or effort. Maybethey forgot how much they lost from the expertadvice in that previous investment club, buteveryone knows real estate is a sure thing. A stock investment is just a piece of paper,but real estate you can feel the dirt, walkthrough the building and slam the doors. That'ssolid. You can't miss. With each deal theyrecognize how they are getting smarter andsmarter. Hurrying, doing nothing constructive tomake their fortune. Just like in 2000. For more than a year the professional traders,insiders and large institutions have beenquietly selling their stocks and I am nowbeginning to hear of sales of major properties.Just because someone has a lot of money doesn'tmean he is smart. These groups can be as wrongas the little investor. Real estate may continue to be an excellentinvestment, but speculation in real estate canbe hazardous. If, or maybe I should say when,this market stops going up or even starts downit is very hard to sell a property. Paymentsmust be made and upkeep maintained. It ispossible to rent out some houses or offices, butthe income ratio today does not allow abreakeven to costs. These real estate lemmings don't seem to care.They are gathering in larger groups and areworking under the greater fool theory. This is a time for caution as it was in 2000for stocks. You don't want to go over the cliffagain. Copyright 2005 Al Thomas' best selling book, "If It Doesn'tGo Up, Don't Buy It!" has helped thousandsof people make money and keep their profits withhis simple 2-step method. Read the first chapterto receive his market letter for 3 months atwww.mutualfundmagic.com to discover why he'sthe man that Wall Street does not want you toknow.
MORE RESOURCES:
Google News |
|
|
|
RELATED ARTICLES
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. Valuation Every day I hear from the "experts" on CNBC-TV and the radio gurus that the way to buy stocks is find value. One man's Rembrandt is another man's connect-the-dots and fill in the spaces. Lies, Damn Lies and Mutual Fund Returns How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing. How Commodity Trading Differs from Stock Trading There are major differences between trading stocks and trading futures. While stories of fortunes made or lost overnight on the futures markets are largely untrue, the futures trader, if using a sound trading system, can usually make more money on the futures market and make it much faster. Perfect Storm Having lived aboard a sailboat for 2 years I was stricken when I saw the movie "PERFECT STORM". I know these are things you want to avoid at all costs. Discipline 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.Before you can have that discipline you must have a successful plan and stick with it. The 401(K): How The Insider Has Stolen Your Retirement! Mutual funds were moderately successful in creating a presence in the stock market until the advent of the investment retirement account and in particular the 401(k). Corporate insiders persuaded the federal government to allow for the 401(k) in lieu of offering employees the traditional pension. Stock Analysis I receive emails from Morningstar. This company provides statistics and analysis of just about every publicly traded stock company you can think of as well as voluminous information on mutual funds around the world. Some Good News for A Change Before we get into all the good news out there, let us first take a look at what the term "news" really means. By definition, the term "news" means the exception to the norm. Protectionism First let's see what protectionism is. According to Mr. What To Buy? Now that you have some money burning a hole in your pocket and the stock market is going up you have decided to buy some stock or maybe a mutual fund, but you have the momentous decisions to what to buy.At this point you have three decisions to make besides which equity to buy:1. The Right Mutual Funds For Baby Boomers If you are a baby boomer, time is not on your side. Many baby boomers see retirement age fast approaching with little to nothing in the way of retirement assets that will allow them to actually retire and live a comfortable lifestyle. Leverage - Margin Debt What is leverage?Here is a definition of leverage from an online dictionary "leverage - The use of credit or borrowed funds to improve one's speculative capacity and increase the rate of return from an investment, as in buying securities on margin."Essentially, the core idea of leverage is that investors can use less money to control bigger amount of investment so that investors can make more money when the price movement is in investors' favor. The Stock Market - Part 1: Believe It Or Not, Its Always Been Your Best Friend And Always Will Be Regardless of the fact that the world's stock markets have shown absolutely no growth between the date of writing this article (Late April 2005) and the late 1990s, they should still be looked at with more than just a sideways glance.Speak gently to them, speak well of them to your friends, learn to trust them, cuddle up close and get to know them - and they will reward you in a way that the banks, mutual funds (Unit Trusts in the UK), pension funds and insurance companies never can or will. Lights of the Stock Market There are red lights, green lights, blue lights and spot lights. There are orange lights, pink light and flash lights. What is a Trading Plan - and Why You Need One? How do you make money without picking tops and bottoms?I am glad you asked.. Political Investing We have two candidates for president that have really different ideas on how to make the economy grow.Bush believes in the entrepreneurial approach. Mutual Funds: The Modern Den of Thieves! Mutual funds were created with the idea that one person can specialize and manage the investments of a large pool of money from multiple investors. Before the great depression mutual funds were called investment pools and mutual fund managers were called pool operators. Your Trading Objective: Why is that so Important? You've decided to try your luck at trading stocks or commodities, but so called experts tell you that you need to determine your trading objective. What exactly does that mean and why is it so important? Well, it's really a question of your trading philosophy. How To Be A Winner Everyone who invests in the stock market wants to be a winner. Each person's definition of a winner will be somewhat different, but there is hardly one who isn't looking for that stock that will double in price within one year.
|
| home | site map |
| © 2006 |