| |
| |
|
|
Stocks and Mutual Funds |
|
Its A Duck
If it walks like a duck, quacks like a duck and looks like a duck it must be a duck. In the stock market if there are more buyers than sellers, more stocks are going up than down and the trend of the general market is higher it must be a bull. Not a duck, not a squirrel, not a possum and especially not a bear. And everyone likes bulls better than bears in the stock market. The mix of news that feeds this bull is indeed strange as is the economic background. Each day there is a report of "better than expected" earnings, employment, confidence, something. The general background tone is quite negative with huge looming long term deficits yet the market keeps chugging away higher and higher. I like that. The talking heads on CNBC-TV have been jawboning a bull market all the way down from NASDAQ 5000 and now they have turned cautious. Yes, some of them are now cheerleaders for the new bull (if it is a bull and not a duck). One of them said the market is undervalued. At 33 times earnings? The mean P/E ratio (Price Earnings) since 1800 has been about 14 or 15, but "this time it is different". Really? There may not be any logic in the market going higher, but I don't need logic when it is going up; I just get on board for a profitable ride. My regular readers know I believe in the trend and right now the trend is up. Don't ask me when the trend will end. I don't know, but I will be watching what Mr. Market is telling me and act accordingly. As long as it has four legs, horns and moos like a cow I will stay with it. When the tune changes - goodbye. The basic question remains. How do you know when the trend changes? Don't ask your broker as he doesn't know; however, there is a very simple and accurate method that many people have used and I also use to know the general direction of the market. If you have a computer or you can use the one at the library you can go to www.bigcharts.com and type in the symbol for the S&P500 Index. It is SP500. You can then put in the value for the number of days you wish for the moving average which in this case is 200. Click and you're done. This is an excellent way to find the trend of the market. When the price of the S&P Index is above the 200-day line you are a buyer and when it falls below you sell out and put your money in cash. Very simple. Right now there is a loud mooing sound. When you hear the growl you will want to run for cover. 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 al@mutualfundstrategy.com; 1-888-345-7870
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
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. How (NOT) to Buy Mutual Funds When it comes to mutual funds, there is a lot more to success than just finding a good one. Sad investment stories like the following are all too common. It Cant Be Done Wouldn't it be nice if you were only in the stock market when it was going up and have everything transferred to cash while it is going down? It is called 'market timing' and your broker or financial planner will tell you "it can't be done". What that person just told you is he doesn't know how to do it. Is Active Trading The Answer? One of the main reasons many of us get into investing is to become financially independent. Who isn't trying to amass a portfolio with enough income to ensure that we don't have to work when we should be playing golf or traveling the world. Fools Gold The stock market has been in an up trend for more than a year. Almost everyone is feeling good and many believe we are back in the old bull market with the previous high of the Dow Jones Industrial Average just about to be broken. Jack and Jill Jack and Jill went up the hill to fetch a bucket of ?money. Money? They are continuing to fill their bucket with stocks without any consideration to the value of these equities. Good Stock Market Tip; Good Return! Forget making a profit; instead focus on the income provided from your stock portfolio. That's right! Forget making a profit. Trading Tips No 2: The Big Lie in the Stock Market It is commonly reported that the stock market averages about 10% per year return over the long term (decades). So the investor that buys and holds a diversified portfolio of stocks or mutual funds is led to believe that their portfolio will grow by 10% per year on average. Index Fund Trading Using Technical Analysis and Swing Trading Strategies Index Fund Trading can be one of the most profitable.. Stock Market Volatility In my opinion, due to the volatility of stock market prices (the rise and fall of stock prices), an investment plan should incorporate both the traits of stick-to-itiveness and common sense, and must have an advantageous, predetermined approach for maximizing each investment in the stock market.Stick-to-itiveness and common sense - oh, what powerful weapons they are when used for a long-term investment plan in the stock market! They mean making the common sense and advantages decision to:? Purchase only those companies that have long-term histories of raising their dividend every year. What Our Investment Advisor Wont Say Off The Bat Most advisors will tell you they can beat the market. They may even point to years in which they did. 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 Next Bull Market We are already in it, but you can't see it. It doesn't look like the one we had in '99. Stock Market Insanity Let's first define insanity. It is doing the same thing over and over and expecting a different result. Why Investors Use Financial Planners Do you have a financial planner? Does one of your friends have a financial planner? Maybe you take your advice from your broker. As I have said countless times before a broker will make you broker. Mr. Market I constantly hear the talking heads on CNBC-TV, the radio and other places talking about THE market. Of course, they mean the stock market which actually now is world wide and no longer just concentrated in New York. Its A Bull, Its A Bear, Its Suptertrader! The higher the market goes the more confusing are the "experts". In the September 14 issue of Investor's Business Daily newspaper we find the great prognosticators such as:Sheldon Jacobs, editor of No-Load Fund Investor newsletter quoted that he is recommending having more cash in your portfolio. 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. 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. Intervention Intervention. Now don't let that big word scare you.
|
||||||||||||||