| |
| |
|
|
Stocks and Mutual Funds |
|
The Bottom?
Every day I hear someone on CNBC proclaim that "this is the bottom" and you should get in there and buy all those "bargains". "The valuations of the DOW stocks are a steal." The low of DOW 8,000 immediately after September 11 was "the low" and the market did rally to about 10,700. That's 2,700 points. A smart trader could have made a fortune in six months. Oops! Then there was a Brody to DOW 7500. That's more than 3,000 points. That, for sure, is "the bottom". I heard them say so on TV and radio. It can't go any lower. Can it? There has been a 1,500 point rally, but there now seems to be another one of those 'Oops' taking place. What is going on anyway? The great majority of the media are too young to remember the last bear market of 1973-74 when the S&P lost 43% and the Value Line index was down 75%. In the last 2 years this bear has seen the S&P500 index lose 50% and there does not seem to be any so-called bottom in sight. Yet investors are encouraged to buy "for the long haul". Even the staunchest Buy and Holders are finding out that they need to have loss limit orders in - a long time ago. There is such a thing as market timing. What has been happening is the market is making a correction of the excesses of the 18-year bull market from 1982 to 2000. If it took 18 years to reach the top then how long will it take to get to the bottom? I wish I knew. The predictions run from today to 15 years hence. Japan's bear just celebrated (?) it's 19-year low. From 1920 to 1980 there were 3 bull markets that lasted about 16 years and each was followed by bear markets that hung on for about an equal length of time. As a technical analyst I have not seen anything that makes me believe we are near "the bottom". And when that happens will the market take off on another bull run? Not very likely as the little guy will be broke and so shook up from his losses he will vow to "never play the market again". That very thing has taken place at the bottom of every major bear market. In 1932 it was more than a generation before investor confidence returned. Am I implying this could be another 1929-32? Anything is possible with the stock market. No broker will ever tell you that cash is a position. Cash at zero percent interest is better than losing 20% each year. They might be having a big garage sale on Wall Street today, but I prefer to keep my money in my pocket - or maybe under the mattress. 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. Copyright 2005
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Price to Earnings Ratio - P/E After finding the price of a particular stock, usually the next number everyone looks at is the P/E ratio.P/E is the ratio of a company's share price to its per-share earnings. What the SEC Really Thinks About Mutual Funds! Let's go into the details of why non-indexed mutual funds are such a bad deal. When Arthur Levitt became the head of the Security Exchange Commission in 1993 he had to sell off all of his individual stocks so that people would not claim that he was doing any dirty inside dealing. Hold Em and Fold Em When most analysts, financial planners, fund specialists and investors try to decide whether to buy a particular stock they immediately go to the financial statements to determine the growth potential of the company. Numbers and more numbers. Stock Market Diversification In one of my previous articles (Investing in the stock market -9 powerful tips), tip number one was:1. Do not spread your money too thin. Discover the Biggest Trading & Investing Online Mistake Any online investor / trader seeks an excellent off or online future trading career opportunity. Despite this goal, did you know 95 percent of all traders go broke within the first two months? Why do investors lose vast amounts of wealth in one or more of the following markets - option trading, forex trading or currency trading, stock trading, future or commodity trading etc? in such a short amount of time?Most online investors / traders interact in devastating forms of thinking, which convinces the mind to the point where the trader believes that an educational enhancement ability that develops superb market research skills is not important. The Exclusive Club of Large Caps Picture one of those clubs where only the real heavyweights need apply. In the library the old aristocrats, General Motors and JP Morgan, are dozing in their leather chairs. 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. Different Types of Mutual Funds This is a guide to the different types of mutual funds. When it comes to investing in mutual funds, investors have literally thousands of choices. Stock Trading Success The ABC's of Stock Trading SuccessStock trading success.. Is The Bear In The Cage? For the last few weeks we have seen the stock market averages going higher and higher each week yet the economic news is still very bad. Is this bear market coming to an end? Will the stock prices and mutual funds go back up to where they were?It seems all the talking heads on TV and the talk radio guys are telling you that now is the time to buy because the market will be much higher next year. Hill of Hope Just about now everyone is confused as to which way the stock market is going to go - up or down. For the past 3 years it has been headed south, but the Wall Street experts have told us that the market never goes down 4 years in a row so this has to be an up year. Invest In The Stock Market For The RIGHT Reason, Using The RIGHT Choices Invest in the stock market for the RIGHT reason, using the RIGHT choices!Investing in the stock market is not purchasing a stock at 25 dollars a share, hoping it will go to 35 so you can sell it, then hoping it will drop back to 25 so you can buy it back, so that you can sell it again at 35, and so on and so forth.In my opinion, that is gambling. Municipal Bonds Because there are so many stocks that are NOT paying dividends and also going down people are looking for a safe investment that will pay a decent return and also won't lose money. Slowly folks are beginning to think about bonds of which there are all kinds. 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. Lifestyle Funds Provide Greater Security? With the stock market stubbornly refusing to settle down and smooth out, Wall Street has been scrambling to come up with "product" they can sell to gun shy investors.One such new concept is the Lifestyle fund; an extremely diversified package designed to be the single fund in an investor's portfolio. A Funny Thing Happened on the Way to the Stock Market On the 40 year journey through the turmoil of a volatile stock market I've noticed "P/E Ratios," "Consensus Estimates," " Bull and Bear Markets," stock ratings of 1, 2, 3, 4, 5, star ratings of 1, 2, 3, 4, 5. Also, stock ratings of "buy," "strong buy," "sell," "hold;" stock rankings of "market perform," "market outperform," "market underperform," "market underweight," "market overweight," "market equalweight," and "market neutral. Oil Stocks CHK WLL - What Is Their Worth? (1) CHK stock price $16.74, NAV $32. Investing in the Stock Market From the book 'The Stockopoly Plan' by the author Charles M. O'MeliaThere are several factors an investor in the stock market should consider:1. Peer Groups Whenever I see mutual fund comparisons in the trade publications and in the financial section of the newspaper they almost always mention a specific fund and tell you how good it is in relation to its peer group. A peer group is a specialized sector of mutual funds that all invest in about the same type of stocks or areas of the world or size of companies or some such categorization. What is Involved in Peak Performance Trading? There is so much involved in developing peak performance, that I recommend that all traders have a business plan. We recommend that the business plan cover all of the following areas.
|
||||||||||||||