Stocks & Mutual Funds Information
Dispelling Illusions of the Stock Market
How can you dispel an illusion unless you look directly at it? The magician distracts the eye with one hand while he does his manipulation with the other. You are looking in the wrong place and not seeing what is actually happening.
Diversification
Wall Street's watchword has always been diversification, but what does it mean and why do they say it?The standard Wall Street definition is flexible because each broker or financial planner will vary the portfolio based on your age and income. They say that the younger you are the more risk you should take and the older you are the less risk.
Dividends
When is a dividend not a dividend?The latest thing "conservative" brokers are preaching these days is to buy stocks that pay dividends. Everyone likes dividends.
Does Japan Matter?
For the last 12 years we have seen the Japanese stock market slowly sinking from a high of 38,000 to about 8,000, more than a 75% loss and very close to the price of the Dow Jones Industrial Average. Why should we care about their stock market?Please understand that the stock market price is a reflection of the overall economy of a country.
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.
Dont Ask Your Broker
Unfortunately, most of you who are reading my column are suffering some substantial losses in the stock market. Whether it is mutual funds or individual stocks everything with mighty few exceptions is going down.
Dont Fight The Fed
One of the great truisms of Wall Street is "Don't fight the Fed". For the long term investors this has resulted in greater profits.
Downdraft
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.
Duck
Duck! No I don't mean a quack, quack. I meant get down, look out for a huge blob of brown stuff is heading your way.
Duct Tape
Did you run out to buy that duct tape yet? Don't forget the plastic sheeting, bottles of water, canned food and a couple of books to read. What are you waiting for? I know - things to get better so you can resume your normal life style.
Getting Even
I know there are a lot of you out there who would like to "get even" with the stock market. Many are on the diet of "I hope, I hope".
Good News?
As the man said, "I've got some good news and I've got some bad news. What do you want to hear first?" It was replied, "Tell me the good news first".
Hedge Funds
You read and hear a lot about hedge funds. Unfortunately, most of what you hear is negative because it comes from the major media that has an interest in reporting negatives about them because the major media is supported by so-called standard mutual funds and brokerage companies that spend big bucks for
advertising.
The Holy Grail (of Investment)
Every year I go to the Money Show in Orlando, Florida. Thousands attend.
Gold Fever
Right now there doesn't seem to be any "gold fever". Very few are out looking to strike it rich in this sector.
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Money, Insanity and Wall Street
Money: the most charged word in the planet. It means something to everyone.
The 1% Solution
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Pension Plans
If you have a pension plan at work you will want to read this and if you don't you will still want to because it affects your retirement account.There are two kinds of formal retirement plans that are set in place by employers.
This Market Is Different
All of the talking heads have been telling us that this market is different. You are going to have to be patient and soon (hopefully in your lifetime) the DOW and the Nasdaq will be back at their old highs.
The Stock Trading Plan - Why You Must Have One To Trade Successfully
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Dividend Paying Stocks
I would like to share with the reader an article printed in the financial section of U.S.
Duct Tape
Did you run out to buy that duct tape yet? Don't forget the plastic sheeting, bottles of water, canned food and a couple of books to read. What are you waiting for? I know - things to get better so you can resume your normal life style.
Cash Is A Position
I go to the Money Show every year to visit with friends who have booths and are speakers. Then when folks are filing out of lectures I listen to their comments on what I know the speaker has been saying.
Buy Low - Sell High
Now where have I heard that before? I know. It was my broker.
Why This Bear?
People are constantly asking me why is the stock market going down. What is causing this bear market? It is relatively simple so don't ask an economist.
Stocks & Oil, Sat Jun 18th, 2005
Both the stock market and oil prices rallied recently, which seems to be a paradox, because high oil prices are negative for earnings (i.e.
Psychology - How to Reduce Negative Thoughts Relating to Trading?
The thinking process of the brain relating to the psychology of trading involves:-- Beliefs -- Feelings -- Values -- Dispositions and -- FaithThe positive or negative energy brings power to a person's actions, which ultimately determines whether a person is a winner or a loser. You can change for the better or for the worst.
Financial Crime
Congress recently passed another new law that is supposed to outlaw financial crime. Corporate officers will be sent to jail for "cooking the books" as it is called.
Being Wrong Buying Stock is Okay
Being wrong is OK, but let's not carry it to extremes. That applies to everything, but let's limit our discussion here to the stock market.
Complacency
During the month of January the Dow Jones Industrial Average, usually referred to as the DOW, had an almost 1,000 point range, most of it down and the average investor has yawned and said 'so what, this has happened many times before'.Is there any reason to worry now?The terrible event of September 11 shocked investors who sold heavily and then watched the market climb back to where it was on September 10.
Investment Lawyers and Trash Stocks
The trash business in its efforts to cook their books trying to keep pace may find itself in some trouble. The efficiency per Garbage Truck unit numbers was growing exponentially at a time when consolidation has slowed as there is a decreasing number of worthy deals to make for a good value, Ah ha Warren Buffet's favorite remarks are here too.