Blood in the Streets by Sean Brodrick
Happy New Year's Eve. What a year, eh? Speculation causes a massive market collapse ... gold prices soar ... leading bankers fail ...
But I'm not talking about today's market woes!
I'm talking about the Panic of 1873.
That was a panic that makes our current market downturn look like a tea party. And there's a good lesson for today's investors to learn from those hard times.
It Was Bad in the U.S., But in Europe ...
The Panic of 1873 makes our market downturn look like a tea party.
Here in the U.S., the Panic of 1873 (which started in 1869) was a combination of railroad speculation, a run on physical gold, and brand-name bank and brokerage houses failing.
Across the pond, in Europe, it was much, much worse. And it gave one of the world's most legendary capitalists the chance to make a fortune for himself and his friends.
I'm talking about Baron Nathan Rothschild. Rothschild was a respected French investor who became the stuff of legend during the financial crisis.
It was a terrible time. A building boom ended with a mortgage bubble bursting. This was followed by a swoon in the prices of many industrial commodities. There was even an energy crisis of sorts — an outbreak of equine influenza (horse flu) saw many forms of transportation temporarily grind to a halt.
Europe fought the Franco-Prussian War, which ended in defeat for France. Emperor Napoleon III was captured, and the French government collapsed. The economic woes combined with military defeat allowed socialists to seize control of the French capital. Paris was turned upside down, and mobs ruled.
And that's when Rothschild told his clients ...
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It Was Time To Buy
The story goes that a panic-stricken investor turned up at Rothschild's office and exclaimed, "You advise me to buy securities now? NOW?! The streets of Paris run with blood."
Rothschild, calm as ever, answered, "My dear friend, if the streets of Paris were not running with blood, do you think you would be able to buy at the present prices?"
There is a second part to Rothschild's quote — one that is perhaps even more impressive: Buy when there's blood in the streets, even if the blood is your own.
Rothschild proved to be quite prescient. French bankers were able to fund a counter-revolution. And the investments that Rothschild and his friends made doubled in value ... and then went higher!
While many U.S. banks failed in the Panic of 1873, we got off lightly compared to Europe. The global depression lasted until 1879. And the end result was the center of gravity for the world's credit shifted from Europe to the U.S.
Fast-Forward To Today
We've seen a building boom end with a mortgage bubble burst. And we've seen the Reuters-Jefferies CRB Index of Raw Industrials, a gauge of the cost of 22 items including scrap copper, cotton and hogs, and a good indicator of economic health, fall off a cliff.
It's down a staggering 39% from its peaks to its lows, as factory production fell 7.3% through November.
Now, though, the CRB Raw Materials Index looks like it's starting to hammer out a bottom. Once a bottom is in place ... the Index could go a LOT higher.
Are Things Bad? Yes!
There are parades of bad news up and down Wall Street and Main Street ...
On Wall Street, the easiest way to get your hands on truckloads of government bailout dollars is to own a bank. Heck, you won't even have to tell the Treasury what you do with the money!
And if you don't own a bank, you could go from being chairman of the Nasdaq to setting up a hedge fund so secretive that your closest friends don't know you're ripping them off for tens of billions of dollars.
On Main Street, manufacturing has slumped to its lowest level in 26 years ... employment has dropped to a six-year low ... retail sales are plummeting. In fact, many experts expect a whopping 25% of U.S. retailers will go bankrupt in 2009.
Problems are rippling around the world, too ...
In Japan, industrial production has taken a header — down 8.1% in November from October.
Even China has caught the recession flu. In Dongguan, where many of Santa's gifts are really made, nearly half of the 3,800 toy factories have closed or plan to shut down. China's steel production has dropped by 12%, and electricity demand is down 9.6%.
Yep ... things are bad. And things in this downturn seem to be going at lightning speed compared to previous economic hard times ...
For example, in the last five months, base metals have fallen in price, on a percentage basis, more than they did during the entirety of the Great Depression!
The question now is: Are we close to blood in the streets ... the time when Rothschild would advise buying?
I'll give you my opinion on that in a bit. First, an important difference between now and the panic of 1873 ...
The Loosest Money Policy Possible.The Long-Term Effects Are Horrific!
In 1873, the U.S. moved to the gold standard, which meant it stopped minting silver dollars altogether. This reduced the domestic money supply, which hurt farmers and anyone else who carried heavy debt loads.
Today, by contrast, we have the loosest money policy possible ...
The U.S. Federal Reserve recently cut its target for overnight interest rates to — zero to 0.25% — its lowest level on record dating to July 1954 — and said it would likely keep it at "exceptionally low levels for some time."
In addition, Treasury Secretary Hank Paulson and Federal Reserve Chairman Ben Bernanke have been handing out cash by the hundreds of billions to every Tom, Dick and Citibank who drives by with a sob story.
The long-term effects of that free and easy money policy are horrific!
Through December, Washington had already spent or pledged $8.7 TRILLION. As a result of all the bailouts for banks, automakers and other new federal outlays, our nation's budget deficit is expected to reach $1 TRILLION in 2009.
And that's just the tip of the iceberg ...
The Grandfather Economic Report series calculates that America now owes a total debt (including government, household, business, financial sector, etc.) of $53 trillion. That's $175,154 for every man, woman and child in the country, an increase of $33,781 per family of four over last year.
However, that's longer-term. In the short-term, that easy-money policy could be just what the doctor ordered for an ailing economy.
Sure, it looks like consumers, who power 70% of America's economy, are in a power dive. But we've also been lucky that oil prices have been falling like Wile E. Coyote, and gasoline prices are tumbling, too. That puts more money in consumers' pockets.
While the Grinch may have stolen Christmas, on an inflation-adjusted basis, consumers spent 0.6% more in November than they did the month before. Disposable income also rose on an inflation-adjusted basis, by 1%, compared with an increase of 0.7 percent in October.
Plus homeowners have rushed to refinance their loans to cut costs or switch from adjustable-rate mortgages to fixed-rate loans. Recently, mortgage applications jumped to the highest level in five years.
My point is that things may not be as bad as they seem. Maybe we have much worse to come. Or maybe we are near the point where Baron Rothschild would tell his clients to buy.
So when that time comes, what should you buy?
Here Are Three Ideas ...
1) Gold Miners. Gold, with its historic outperformance during times of trouble, is looking better and better. Sure, I've been pounding the table about gold for some time now. And it's been zig-zagging higher. And "buy" signals on select gold stocks are flashing on my board like holiday lights.
2) Oil Companies. Say what? Why buy oil when many analysts are predicting $25 oil in 2009? My reason is simple: Enjoy the cheap oil, because it won't last. We've seen oil prices plunge about 73% in six months. That has never happened in history before — ever.
The current price of crude signals that something is very out of whack in the oil markets. And I can tell you what the effect is: Projects that cost more than the current price of oil are being taken offline — slowly at first. But the process could quickly start to cascade.
That should quickly bring supply and demand in balance. And if prices go higher, we can always bring more production online, right? Maybe.
But the kind of black swan event we've seen in oil markets leaves long and deep scars in the conservative psyches of oilmen. That's why I think it's going to be a while before anyone goes after new deepwater wells that cost $80 a barrel.
So who will profit from this? Major oil companies with lots of cash.
That brings me to my third recommendation ...
3) Big Companies With Lots Of Cash. For smaller industrial firms that relied on seasonal demand and outside capital, the Panic Years of the 1870s put them in one heck of a bind.
As capital reserves dried up, so did their industries. Who thrived? The large companies with guaranteed contracts and the ability to force deals on their suppliers and vendors.
Baron Rothschild would tell you to make the most of troubled times.
Andrew Carnegie and John D. Rockefeller had enough capital reserves to finance their own continuing growth. Both bought out their competitors at fire-sale prices.
And today, large, well-capitalized companies could be the way to go.
Indeed, these are tumultuous times. Yet I'm sure that Baron Rothschild would tell you to make the most of them.
I wish you all the best for 2009.
Yours for trading profits,
Sean
About Money and Markets
For more information and archived issues, visit http://www.moneyandmarkets.com
Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Tony Sagami, Nilus Mattive, Sean Brodrick, Larry Edelson, Michael Larson and Jack Crooks. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Michelle Johncke, Dinesh Kalera, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau and Leslie Underwood.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph:
This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.moneyandmarkets.com.
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Showing posts with label stocks. Show all posts
Showing posts with label stocks. Show all posts
Wednesday, December 31, 2008
Sunday, October 12, 2008
Black October Getting Blacker
Black October Getting Blacker by Martin D. Weiss, Ph.D.
Three weeks ago, on September 25, I sent you an email with the subject "Black October Dead Ahead."
In it, Mike Larson wrote: "October is the month that brought us the Crash of '29 and the Crash of '87 — single-day declines in the Dow that would be the equivalent to 1,400 and 2,500 points in today's market. And next Wednesday, a new killer Black October begins."
Then, just in case you missed that e-mail, we sent you a similar warning three times in Money and Markets and posted it prominently to our Website.
We implored you to get out of the market, and we recommended inverse investments that naturally explode in value when stocks crash.
Now, just twelve days into the month of October ...
We've seen the single worst week in the history of the Dow.
We have seen two of the three greatest one-day crashes in stock market history.
More than $8 trillion of stock market wealth has evaporated (since January).
And there's no end in sight.
With credit markets frozen and the global economy coming unglued, it's now very obvious that this is a secular bear market. And, according to Friday's Wall Street Journal,
"Secular bear markets can last for 14 years or longer, like the one from 1968 to 1982. Typically, such bear markets are accompanied by repeated economic disappointments, as excesses that developed during long periods of growth are unwound. That was true during the 1970s, and it seems to be the case now, although the underlying economic issues are different."
We hope they're wrong. We'd actually prefer to see the bear market strike more swiftly and end more swiftly. But in either scenario, unless you're absolutely fully prepared for what's to come, you need start taking immediate protective action — ideally as soon as Monday morning!
For urgent instructions, see the 1-hour video recording of the emergency Q&A Conference we just held Friday. It's available for immediate viewing right now. Just turn up your computer speakers and click here.
Good luck and God bless!
Martin
About Money and Markets
For more information and archived issues, visit http://www.gliq.com/cgi-bin/click?weiss_mam+111401-2+SUM1114SPLIT1+rob@contempowest.com
Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Tony Sagami, Nilus Mattive, Sean Brodrick, Larry Edelson, Michael Larson and Jack Crooks. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Dinesh Kalera, Christina Kern, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau and Leslie Underwood.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph:
This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.gliq.com/cgi-bin/click?weiss_mam+111401-2+SUM1114SPLIT1+rob@contempowest.com
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Optimists: House prices expected to fall until 2009 (articles.moneycentral.msn.com)Paulson Credit Push Earns Jeers From Free-Marketers (bloomberg.com)Disaster capitalism, the new Manifest Destiny (eyeonmiami.blogspot.com)SIV Bailout Plan: Don't Ask, Don't Sell (seekingalpha.com)Text of Paulson's Remarks on Housing (blogs.wsj.com)As Defaults Rise, Washington Worries (nytimes.com)Mortgage Securities Bailout Fund: A Bribe? (seekingalpha.com)Banks May Pool Billions to Avert Securities Sell-Off (nytimes.com)Boom Boom Tuesday (market-ticker.denninger.net)Wells Fargo, Regions Financial, KeyCorp Profits Miss (bloomberg.com)Wells Fargo Hit by Mortgage Woes (thestreet.com)Foreigners Sold Record $69.3 Billion in U.S. Assets (bloomberg.com)German bank hit by subprime crisis slashes results, directors leave (afp.google.com)Builder D.R. Horton Orders Fall (cnbc.com)D.R. Horton Orders Fall to Lowest in Almost Six Years (bloomberg.com)Housebuilder Outlook Falls to Record Low (biz.yahoo.com)8 Areas in the U.S. Most Unaffordable in World (efinancedirectory.com)Blame the Downturn on Homebuilders and Banks (doctorhousingbubble.com)Southern California house sales plunge 30 pct in Sept (reuters.com)2005 San Diegeo Sales (sandicor.com)2007 San Diego Sales (sandicor.com)
Bloomberg.com
market-ticker.denninger.net
eyeonmiami.blogspot.com
Three weeks ago, on September 25, I sent you an email with the subject "Black October Dead Ahead."
In it, Mike Larson wrote: "October is the month that brought us the Crash of '29 and the Crash of '87 — single-day declines in the Dow that would be the equivalent to 1,400 and 2,500 points in today's market. And next Wednesday, a new killer Black October begins."
Then, just in case you missed that e-mail, we sent you a similar warning three times in Money and Markets and posted it prominently to our Website.
We implored you to get out of the market, and we recommended inverse investments that naturally explode in value when stocks crash.
Now, just twelve days into the month of October ...
We've seen the single worst week in the history of the Dow.
We have seen two of the three greatest one-day crashes in stock market history.
More than $8 trillion of stock market wealth has evaporated (since January).
And there's no end in sight.
With credit markets frozen and the global economy coming unglued, it's now very obvious that this is a secular bear market. And, according to Friday's Wall Street Journal,
"Secular bear markets can last for 14 years or longer, like the one from 1968 to 1982. Typically, such bear markets are accompanied by repeated economic disappointments, as excesses that developed during long periods of growth are unwound. That was true during the 1970s, and it seems to be the case now, although the underlying economic issues are different."
We hope they're wrong. We'd actually prefer to see the bear market strike more swiftly and end more swiftly. But in either scenario, unless you're absolutely fully prepared for what's to come, you need start taking immediate protective action — ideally as soon as Monday morning!
For urgent instructions, see the 1-hour video recording of the emergency Q&A Conference we just held Friday. It's available for immediate viewing right now. Just turn up your computer speakers and click here.
Good luck and God bless!
Martin
About Money and Markets
For more information and archived issues, visit http://www.gliq.com/cgi-bin/click?weiss_mam+111401-2+SUM1114SPLIT1+rob@contempowest.com
Money and Markets (MaM) is published by Weiss Research, Inc. and written by Martin D. Weiss along with Tony Sagami, Nilus Mattive, Sean Brodrick, Larry Edelson, Michael Larson and Jack Crooks. To avoid conflicts of interest, Weiss Research and its staff do not hold positions in companies recommended in MaM, nor do we accept any compensation for such recommendations. The comments, graphs, forecasts, and indices published in MaM are based upon data whose accuracy is deemed reliable but not guaranteed. Performance returns cited are derived from our best estimates but must be considered hypothetical in as much as we do not track the actual prices investors pay or receive. Regular contributors and staff include Kristen Adams, Andrea Baumwald, John Burke, Amber Dakar, Dinesh Kalera, Christina Kern, Red Morgan, Maryellen Murphy, Jennifer Newman-Amos, Adam Shafer, Julie Trudeau and Leslie Underwood.
Attention editors and publishers! Money and Markets issues can be republished. Republished issues MUST include attribution of the author(s) and the following short paragraph:
This investment news is brought to you by Money and Markets. Money and Markets is a free daily investment newsletter from Martin D. Weiss and Weiss Research analysts offering the latest investing news and financial insights for the stock market, including tips and advice on investing in gold, energy and oil. Dr. Weiss is a leader in the fields of investing, interest rates, financial safety and economic forecasting. To view archives or subscribe, visit http://www.gliq.com/cgi-bin/click?weiss_mam+111401-2+SUM1114SPLIT1+rob@contempowest.com
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Optimists: House prices expected to fall until 2009 (articles.moneycentral.msn.com)Paulson Credit Push Earns Jeers From Free-Marketers (bloomberg.com)Disaster capitalism, the new Manifest Destiny (eyeonmiami.blogspot.com)SIV Bailout Plan: Don't Ask, Don't Sell (seekingalpha.com)Text of Paulson's Remarks on Housing (blogs.wsj.com)As Defaults Rise, Washington Worries (nytimes.com)Mortgage Securities Bailout Fund: A Bribe? (seekingalpha.com)Banks May Pool Billions to Avert Securities Sell-Off (nytimes.com)Boom Boom Tuesday (market-ticker.denninger.net)Wells Fargo, Regions Financial, KeyCorp Profits Miss (bloomberg.com)Wells Fargo Hit by Mortgage Woes (thestreet.com)Foreigners Sold Record $69.3 Billion in U.S. Assets (bloomberg.com)German bank hit by subprime crisis slashes results, directors leave (afp.google.com)Builder D.R. Horton Orders Fall (cnbc.com)D.R. Horton Orders Fall to Lowest in Almost Six Years (bloomberg.com)Housebuilder Outlook Falls to Record Low (biz.yahoo.com)8 Areas in the U.S. Most Unaffordable in World (efinancedirectory.com)Blame the Downturn on Homebuilders and Banks (doctorhousingbubble.com)Southern California house sales plunge 30 pct in Sept (reuters.com)2005 San Diegeo Sales (sandicor.com)2007 San Diego Sales (sandicor.com)
Bloomberg.com
market-ticker.denninger.net
eyeonmiami.blogspot.com
Saturday, August 30, 2008
Bear Market Profits
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. He will give you a 200-page answer that is undecipherable. Can you understand Mr. Greenspan?
Let's first realize what it is that makes a stock price go up. The basic reason is that the investor thinks that the company will make a larger profit and pay a good dividend - one that is better than it is now doing. People buy in anticipation of better earnings. Really, it is that simple.
Conversely, when a stock starts down investors think the company can no longer sustain its sales and earnings and that the current price is too high so it is sold. Every other reason you hear is hype, smoke and mirrors. Last year we saw more than 1,000 stocks on the Nasdaq exchange lose more than 90% of their value. Many of those stocks have lost even more this year and scores of them are either out of business or been merged into other companies. Their anticipated sales and earnings never showed up.
When a large section of the market is adversely affected with shrinking sales that action many times begins to slip over into other sectors. Last year it was the technology group as a whole that suffered the most. This year it will be almost all the New York Stock Exchange stocks. We have just witnessed the biggest point loss in one week in NYSE history. In the long run it is going to go much lower after its rally.
The market was already headed down before the World Trade Center tragedy and this single act triggered a great amount of emotional selling. The bear market, which has been with us for about a year, would have gone down to the September 21, 2001 lows anyway even if the New York disaster had not occurred.
One thing investors do not like is uncertainty. People want their money to be safe so they will sell some of what they have and will not buy. Those with 401Ks can transfer to money markets. It has become very evident that almost every type of business with a few exceptions will have less sales and shrinking profits. It is not a time to buy. The talking heads on TV are telling you that you can't afford to be out of the market. Oh, yes you can. The best place for the next several months is in a nice safe Money Market fund or some type of short-term bond no-load mutual fund.
Until the market uncertainty goes away and profits start improving for a majority of companies it is best to maintain a cash position. That may not be until the middle of next year. In the meantime cash is king. Don't let anyone talk you into buying anything. The bear is still loose. Don't let him gobble up your investments.
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.
Shorting Stocks - The Basics, Part I of IIWhat does it mean to short a stock?This means that you borrow the stock from your broker to sell to a third party. The idea is to buy back the stock at a lower price, returning the shares to your broker while leaving the remaining cash in your account as a profit.
Shorting Stocks - The Basics, Part II of IIAfter the publication of the first part of this two part series, I had a few questions asking if shorting stocks is legal and I will quickly reply with a big YES. Some people believe that shorting shares of American companies is not patriotic or does not seem like the right thing to do.
Trading as a BusinessWhat can I expect to make my first year of trading?We get questions like this one quite often. We find that most aspiring traders don't have a clue as to what to expect from the market.
Bollinger Bands StrategiesThe Bollinger Band theory is designed to depict the volatility of a stock. It is quite simple, being composed of a simple moving average, and its upper and lower "bands" that are 2 standard deviations away.
Peer GroupsWhenever 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.
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.
Kick The TiresBefore you buy another car you walk around the lot, kick the tires, slam the doors and look at the mileage indicator. That's an odometer.
How To Buy And HoldOne of the most believed bits of conventional wisdom from Wall Street is to Buy and Hold. Any stock or mutual fund should be put away for eternity and never sold.
Rebalance And DiversifyThe 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.
Social InsecurityJust about everything you have been told about Social Security is an obfuscation. That is a big word for convoluted truth or lie.
Risk ControlEverything you invest in has risk so you want to do your research before you put your money on the line.For example, when McDonald's opens a new restaurant (please, don't call it a hamburger joint) they will investigate as many of the relevant facts as possible.
Protect Your 401KChecked your 401K lately? Going back to about a year ago many of these retirement accounts have shrunk by 30%, some even more. What Happened?You have been putting money in for years and your employer may have been contributing to your plan also.
One Way StreetEver 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?In either case don't panic. You can get out of that one way street by carefully backing out.
Top 25 Growth FundsOn Monday, November 25, 2000 Investor's Business Daily listed on page B1 the Top 25 Growth Mutual Funds for the last 36 months along with their performance for the year 2000 to date. Only four showed a profit this year of 21% and the other three had increases of 12%, 5%, and 5%.
How To Pick A Mutual FundMutual funds by definition are a mixed bag of stocks, bonds and a little cash. Their price per share is the NAV, Net Asset Value of the total amount of money in the mutual fund divided by the number of shares.
Let's first realize what it is that makes a stock price go up. The basic reason is that the investor thinks that the company will make a larger profit and pay a good dividend - one that is better than it is now doing. People buy in anticipation of better earnings. Really, it is that simple.
Conversely, when a stock starts down investors think the company can no longer sustain its sales and earnings and that the current price is too high so it is sold. Every other reason you hear is hype, smoke and mirrors. Last year we saw more than 1,000 stocks on the Nasdaq exchange lose more than 90% of their value. Many of those stocks have lost even more this year and scores of them are either out of business or been merged into other companies. Their anticipated sales and earnings never showed up.
When a large section of the market is adversely affected with shrinking sales that action many times begins to slip over into other sectors. Last year it was the technology group as a whole that suffered the most. This year it will be almost all the New York Stock Exchange stocks. We have just witnessed the biggest point loss in one week in NYSE history. In the long run it is going to go much lower after its rally.
The market was already headed down before the World Trade Center tragedy and this single act triggered a great amount of emotional selling. The bear market, which has been with us for about a year, would have gone down to the September 21, 2001 lows anyway even if the New York disaster had not occurred.
One thing investors do not like is uncertainty. People want their money to be safe so they will sell some of what they have and will not buy. Those with 401Ks can transfer to money markets. It has become very evident that almost every type of business with a few exceptions will have less sales and shrinking profits. It is not a time to buy. The talking heads on TV are telling you that you can't afford to be out of the market. Oh, yes you can. The best place for the next several months is in a nice safe Money Market fund or some type of short-term bond no-load mutual fund.
Until the market uncertainty goes away and profits start improving for a majority of companies it is best to maintain a cash position. That may not be until the middle of next year. In the meantime cash is king. Don't let anyone talk you into buying anything. The bear is still loose. Don't let him gobble up your investments.
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.
Shorting Stocks - The Basics, Part I of IIWhat does it mean to short a stock?This means that you borrow the stock from your broker to sell to a third party. The idea is to buy back the stock at a lower price, returning the shares to your broker while leaving the remaining cash in your account as a profit.
Shorting Stocks - The Basics, Part II of IIAfter the publication of the first part of this two part series, I had a few questions asking if shorting stocks is legal and I will quickly reply with a big YES. Some people believe that shorting shares of American companies is not patriotic or does not seem like the right thing to do.
Trading as a BusinessWhat can I expect to make my first year of trading?We get questions like this one quite often. We find that most aspiring traders don't have a clue as to what to expect from the market.
Bollinger Bands StrategiesThe Bollinger Band theory is designed to depict the volatility of a stock. It is quite simple, being composed of a simple moving average, and its upper and lower "bands" that are 2 standard deviations away.
Peer GroupsWhenever 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.
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.
Kick The TiresBefore you buy another car you walk around the lot, kick the tires, slam the doors and look at the mileage indicator. That's an odometer.
How To Buy And HoldOne of the most believed bits of conventional wisdom from Wall Street is to Buy and Hold. Any stock or mutual fund should be put away for eternity and never sold.
Rebalance And DiversifyThe 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.
Social InsecurityJust about everything you have been told about Social Security is an obfuscation. That is a big word for convoluted truth or lie.
Risk ControlEverything you invest in has risk so you want to do your research before you put your money on the line.For example, when McDonald's opens a new restaurant (please, don't call it a hamburger joint) they will investigate as many of the relevant facts as possible.
Protect Your 401KChecked your 401K lately? Going back to about a year ago many of these retirement accounts have shrunk by 30%, some even more. What Happened?You have been putting money in for years and your employer may have been contributing to your plan also.
One Way StreetEver 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?In either case don't panic. You can get out of that one way street by carefully backing out.
Top 25 Growth FundsOn Monday, November 25, 2000 Investor's Business Daily listed on page B1 the Top 25 Growth Mutual Funds for the last 36 months along with their performance for the year 2000 to date. Only four showed a profit this year of 21% and the other three had increases of 12%, 5%, and 5%.
How To Pick A Mutual FundMutual funds by definition are a mixed bag of stocks, bonds and a little cash. Their price per share is the NAV, Net Asset Value of the total amount of money in the mutual fund divided by the number of shares.
Forecasting the Stock Market
Every day I see in the financial section of newspapers how to forecast what the market will do in 6 months, 12 months, several years. "Ten stocks that will double in the next 6 months." Right! I have trouble trying to forecast what it will do tomorrow. Do not trust any who claims he knows what the future will be for the market.
Of course, your broker will send you gobs of slick material about various companies that predict they will double or triple in the next 12 months. On the New York Stock Exchange there will be about one half of one per cent (0.5%) of companies that will double this year. Are you smart enough to pick those winners? I'm not and I am considered a professional trader. And I am sure your broker isn't either. He just wants to make a commission and is probably promoting a stock his brokerage company wants to push.
Every investor wants to know the future and will send money to some "expert" who will send him news about a company that only (?) he knows. And pigs can fly. One thing about the market. It is almost impossible to keep a secret and everyone knows everything about other companies. As soon as some "analyst" finds a cogent fact that can influence a stock price he will share that "secret" with a few close friends. Within minutes the "secret" is known by hundreds of thousands and is immediately reflected in the price of the stock.
If you do get sucked into one of these money traps by some smooth-talking salesman or newspaper verbiage I strongly suggest you immediately plan your exit strategy. Without an exit plan you can easily lose a large amount of your "investment". This is not an investment; it is a gamble and should be treated as such. The first thought of any professional trader is 'if I am wrong how much am I willing to lose'? Maybe 2%, 5%, certainly no more than 10%. Pros understand that small losses are OK, but never take a big loss.
From 1982 to 2000 it seemed everyone was a financial genius. How many of those folks kept those big winnings from 2000? Almost none. Most lost 40% to 60% of their money. Brokers said, "Hang in there. You are in for the long haul". Unfortunately he did not tell you that Modern Portfolio Theory is based on a 40 year time line.
Yes, but understand you don't need to predict anything. Don't forecast. What you can easily learn is follow the major trend. You bought in 1982 and you sold out in 2000. The trend can be found in many ways with the simplest being posted every day in Investors Business Daily newspaper under the IBD Mutual Fund Index. When the Index price is above the 200-day moving average you own equities and when it is below you are in cash or bonds. Nothing complicated,
Don't try to forecast the market. Let the market trend tell you.
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.
Dividend Paying StocksI would like to share with the reader an article printed in the financial section of U.S.
Investing in the Stock Market - When To!Is really not as important as to how you invest in the stock market. And how you invest in the stock market should take into consideration what goals you are setting for that stock market investment.
High Price/Earnings Ratios and the Stock Market: a Personal OdysseyAfter some forty years of banking and investments, I retired in 2001. But since I do not golf, I soon found retirement to be very boring.
Forces that Move Stock PricesAmong the largest forces that affect stock prices are inflation, interest rates, bonds, commodities and currencies. At times the stock market suddenly reverses itself followed typically by published explanations phrased to suggest that the writer's keen observation allowed him to predict the market turn.
9 Deadly Trading Mistakes!The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals!1.
Making Outsized Returns in the Stock Market - Using the Dow TheoryThe Dow TheoryCharles H. DowRobert RheaE.
Basics of Stock MarketFinancial markets provide their participants with the most favorable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market.
Planning Your Dive and Diving Your Plan - Trading!A colleague of mine just returned from a scuba diving trip in Cozumel, which just happens to be one of my favorite places to dive. Anyway, she was telling me about an unexpected difficulty she encountered while swimming around the corral reef down about 85 feet.
Trading Education: The Best of Both Worlds!I made my very first investment in the stock market when I was ten years old. Ever since then I have been hooked! Now I check out hundreds of trades each year with the same excitement andenthusiasm, and each time try to find that one market at the right time that could dramatically create wealth.
Historical Briefing: Stocks, Finance and MoneyThe World Bank claims that some two billion of the world's citizens live on $1 per day or less! That fact absolutely shocked me. With this statistic in mind it becomes important to focus on all of the things that have served as money over the history of civilization.
Oil Stocks CHK WLL - What Is Their Worth?(1) CHK stock price $16.74, NAV $32.
Defining a Long-Term Investment in the Stock MarketFor some "long term" would mean holding a stock position over the weekend. For others, it may mean holding a security for at least 1 year for the purpose of declaring a long-term capital gain, thus saving on taxes.
Analysts - Do They Really Know The Stock Market?When you become interested in a stock or mutual fund you can call your broker and he will send you reports on how the company is doing, what their management is like and what might be the projected earnings for the company and how the industry is doing. Great information.
Stock Chart ReadingAs an investor you will want to check out any equity before you buy it. Many investors go to Morningstar which is one of the largest providers of mutual fund information in the world.
Forecasting the Stock MarketEvery day I see in the financial section of newspapers how to forecast what the market will do in 6 months, 12 months, several years. "Ten stocks that will double in the next 6 months.
More Articles from Stocks & Mutual Funds Information: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Of course, your broker will send you gobs of slick material about various companies that predict they will double or triple in the next 12 months. On the New York Stock Exchange there will be about one half of one per cent (0.5%) of companies that will double this year. Are you smart enough to pick those winners? I'm not and I am considered a professional trader. And I am sure your broker isn't either. He just wants to make a commission and is probably promoting a stock his brokerage company wants to push.
Every investor wants to know the future and will send money to some "expert" who will send him news about a company that only (?) he knows. And pigs can fly. One thing about the market. It is almost impossible to keep a secret and everyone knows everything about other companies. As soon as some "analyst" finds a cogent fact that can influence a stock price he will share that "secret" with a few close friends. Within minutes the "secret" is known by hundreds of thousands and is immediately reflected in the price of the stock.
If you do get sucked into one of these money traps by some smooth-talking salesman or newspaper verbiage I strongly suggest you immediately plan your exit strategy. Without an exit plan you can easily lose a large amount of your "investment". This is not an investment; it is a gamble and should be treated as such. The first thought of any professional trader is 'if I am wrong how much am I willing to lose'? Maybe 2%, 5%, certainly no more than 10%. Pros understand that small losses are OK, but never take a big loss.
From 1982 to 2000 it seemed everyone was a financial genius. How many of those folks kept those big winnings from 2000? Almost none. Most lost 40% to 60% of their money. Brokers said, "Hang in there. You are in for the long haul". Unfortunately he did not tell you that Modern Portfolio Theory is based on a 40 year time line.
Yes, but understand you don't need to predict anything. Don't forecast. What you can easily learn is follow the major trend. You bought in 1982 and you sold out in 2000. The trend can be found in many ways with the simplest being posted every day in Investors Business Daily newspaper under the IBD Mutual Fund Index. When the Index price is above the 200-day moving average you own equities and when it is below you are in cash or bonds. Nothing complicated,
Don't try to forecast the market. Let the market trend tell you.
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.
Dividend Paying StocksI would like to share with the reader an article printed in the financial section of U.S.
Investing in the Stock Market - When To!Is really not as important as to how you invest in the stock market. And how you invest in the stock market should take into consideration what goals you are setting for that stock market investment.
High Price/Earnings Ratios and the Stock Market: a Personal OdysseyAfter some forty years of banking and investments, I retired in 2001. But since I do not golf, I soon found retirement to be very boring.
Forces that Move Stock PricesAmong the largest forces that affect stock prices are inflation, interest rates, bonds, commodities and currencies. At times the stock market suddenly reverses itself followed typically by published explanations phrased to suggest that the writer's keen observation allowed him to predict the market turn.
9 Deadly Trading Mistakes!The following are a list of nine things you want to avoid at all costs. Anyone of them can literally destroy your financial dreams and goals!1.
Making Outsized Returns in the Stock Market - Using the Dow TheoryThe Dow TheoryCharles H. DowRobert RheaE.
Basics of Stock MarketFinancial markets provide their participants with the most favorable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market.
Planning Your Dive and Diving Your Plan - Trading!A colleague of mine just returned from a scuba diving trip in Cozumel, which just happens to be one of my favorite places to dive. Anyway, she was telling me about an unexpected difficulty she encountered while swimming around the corral reef down about 85 feet.
Trading Education: The Best of Both Worlds!I made my very first investment in the stock market when I was ten years old. Ever since then I have been hooked! Now I check out hundreds of trades each year with the same excitement andenthusiasm, and each time try to find that one market at the right time that could dramatically create wealth.
Historical Briefing: Stocks, Finance and MoneyThe World Bank claims that some two billion of the world's citizens live on $1 per day or less! That fact absolutely shocked me. With this statistic in mind it becomes important to focus on all of the things that have served as money over the history of civilization.
Oil Stocks CHK WLL - What Is Their Worth?(1) CHK stock price $16.74, NAV $32.
Defining a Long-Term Investment in the Stock MarketFor some "long term" would mean holding a stock position over the weekend. For others, it may mean holding a security for at least 1 year for the purpose of declaring a long-term capital gain, thus saving on taxes.
Analysts - Do They Really Know The Stock Market?When you become interested in a stock or mutual fund you can call your broker and he will send you reports on how the company is doing, what their management is like and what might be the projected earnings for the company and how the industry is doing. Great information.
Stock Chart ReadingAs an investor you will want to check out any equity before you buy it. Many investors go to Morningstar which is one of the largest providers of mutual fund information in the world.
Forecasting the Stock MarketEvery day I see in the financial section of newspapers how to forecast what the market will do in 6 months, 12 months, several years. "Ten stocks that will double in the next 6 months.
More Articles from Stocks & Mutual Funds Information: 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28
Saturday, August 16, 2008
Oil Stocks As A Long Term Investment
The demand for world oil is increasing while world reserves are decreasing. This is a known fact. The current price of oil can certainly confirm this statement. Consensus also agrees that we will never see $25.00 oil again. The logical conclusion to our above statement is oil stocks should be a good long term investment. However, the location of the oil companies' reserves can affect their bottom line and valuation.
Some of the largest reserves in the world are found in Venezuela, Saudi Arabia, Russia and Canada. Political unrest in Venezuela, unstable and unpredictable government in Russia and Osama Bin Laden targeting Saudi Arabia leave Canada, namely the Alberta Oil Sands, as the largest, most reliable oil reserves in the world.
Companies like Exxon Mobil Corp., Royal Dutch/Shell Group and Canadian Natural Resources Ltd. are planning to spend billions during the next 10 years to develop Alberta's unusual oil deposits as demand for crude rises and output from existing reserves decline. Oil sands output in Alberta may double to 2 million barrels a day by 2013, according to a presentation by Enbridge Inc. earlier this month. Oil sands are deposits of bitumen - heavy oil that must be treated to convert it into crude oil for use in refineries to produce gasoline and diesel fuels. The U.S. Energy Department revised its global oil resource estimates to include the oil sands 174 billion barrels of proven reserves that can be recovered using current technology.
With demand for oil and other commodities from China and India increasing due to their growing economies, strong trading relationships are procuring with Canada - a country with numerous resources, political stability and neutral military views.
Companies with reserves in the Alberta oil sands look like a great investment for the next decade There are many companies with reserves in the Oil Sands here are some with strong exposure.
Suncor Energy Inc. SU.tse , Western Oil Sands Inc. WTO.tse and the Canadian Oil Sands Trust COS/UN.tse
Trading Penny Stocks investment strategies for penny stocks1source4stocks.com provides penny stock traders with online trading and investment tips, online trading strategies, and penny stock picks.
What the Hell is a Stock option?A 'stock option' is a contract between two parties giving the buyer (also known as the 'taker') the right, but not the obligation, to either buy or sell a specific quantity of shares at a pre-agreed price (known as the 'strike price' or 'exercise price') by a certain future 'expiry' date. There are two different types of options that can be traded, known as 'call options' and 'put options'.
Are You A Stockaholic?Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments.
Is the Stock Market for You?Many people would like to diversify their portfolios to expand their holdings. Making it big in the stock market has been a dream for many people who want to strike it rich.
Trade Stocks for RealI read a comment by a forum member on another site earlier today that suggested that every investor should back test their system for at least twenty years. I disagree and will now tell you why.
The Problem With Hedge FundsAre hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often required to sign an acknowledgement confirming their qualifications to invest in hedge funds.
A Funny Thing Happened on the Way to the Stock MarketOn 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 As A Long Term InvestmentThe demand for world oil is increasing while world reserves are decreasing. This is a known fact.
Selling Strategies - Setting a Stop LossSometimes the best way of lowering exposure to risk is not to invest at all! However, when we make the decision to jump into the muddy waters of the stock market, its always a good idea to have a life jacket ready, just in case.We all have stories of that "must have" "can't lose" stock that looking back, we didn't really need to buy, and it definitely lost.
Small-Cap Stocks: The Beginning of the JourneyWhen an individual investor wants to roll up his sleeves and do some research in the pursuit of the next big winner in the stock market, the place many start is in the small cap sector.As with the other capitulation sizes (capitalization is a stock's market value), no one can completely agree on a precise definition, but corporations under $2 billion are often considered small caps.
Mid-Cap Stocks: Asset Class with an Identity CrisisMuch like the middle child, mid-cap stocks have long struggled to find their identity. Carved out from the upper echelons of the small caps and the lower end of the large caps, the mid-cap sector has a rough definition of stock with a market capitalization of greater than $2 billion, but less than $10 billion.
The Exclusive Club of Large CapsPicture 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.
Living Trust Investing: Income Considerations when the Grantor DiesA common problem I often see when working with living trust beneficiaries and trustees is the lack of attention in rethinking income strategies in the event of the grantor's death.When the grantor of a living trust dies, the trustee (especially a family member or close friend) sometimes feels reluctant to revise the portfolio, feeling it's an affront to the wishes of the deceased.
Dividend Reinvestment Plans: Investing on Automatic PilotIf you're like many investors who squander those small dividend checks from your stock portfolio, a Dividend Reinvestment Plan (DRP) might be just what you need. Just as its name implies, a Dividend Reinvestment Plan allows you to reinvest some or all of those dividends into more stock of the issuing company.
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.
A Stock Market Investment Plan that Never Lets You DownThe bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M.
Some of the largest reserves in the world are found in Venezuela, Saudi Arabia, Russia and Canada. Political unrest in Venezuela, unstable and unpredictable government in Russia and Osama Bin Laden targeting Saudi Arabia leave Canada, namely the Alberta Oil Sands, as the largest, most reliable oil reserves in the world.
Companies like Exxon Mobil Corp., Royal Dutch/Shell Group and Canadian Natural Resources Ltd. are planning to spend billions during the next 10 years to develop Alberta's unusual oil deposits as demand for crude rises and output from existing reserves decline. Oil sands output in Alberta may double to 2 million barrels a day by 2013, according to a presentation by Enbridge Inc. earlier this month. Oil sands are deposits of bitumen - heavy oil that must be treated to convert it into crude oil for use in refineries to produce gasoline and diesel fuels. The U.S. Energy Department revised its global oil resource estimates to include the oil sands 174 billion barrels of proven reserves that can be recovered using current technology.
With demand for oil and other commodities from China and India increasing due to their growing economies, strong trading relationships are procuring with Canada - a country with numerous resources, political stability and neutral military views.
Companies with reserves in the Alberta oil sands look like a great investment for the next decade There are many companies with reserves in the Oil Sands here are some with strong exposure.
Suncor Energy Inc. SU.tse , Western Oil Sands Inc. WTO.tse and the Canadian Oil Sands Trust COS/UN.tse
Trading Penny Stocks investment strategies for penny stocks1source4stocks.com provides penny stock traders with online trading and investment tips, online trading strategies, and penny stock picks.
What the Hell is a Stock option?A 'stock option' is a contract between two parties giving the buyer (also known as the 'taker') the right, but not the obligation, to either buy or sell a specific quantity of shares at a pre-agreed price (known as the 'strike price' or 'exercise price') by a certain future 'expiry' date. There are two different types of options that can be traded, known as 'call options' and 'put options'.
Are You A Stockaholic?Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics, chocaholics and other "-aholics". What about stockaholics? Stockaholics are people who are overly obsessive about their stock market investments.
Is the Stock Market for You?Many people would like to diversify their portfolios to expand their holdings. Making it big in the stock market has been a dream for many people who want to strike it rich.
Trade Stocks for RealI read a comment by a forum member on another site earlier today that suggested that every investor should back test their system for at least twenty years. I disagree and will now tell you why.
The Problem With Hedge FundsAre hedge funds a suitable investment for you? Hedge funds are an appropriate investment for qualified purchasers with a net worth above one million dollars and an annual income exceeding two hundred and fifty thousand dollars. Purchasers are often required to sign an acknowledgement confirming their qualifications to invest in hedge funds.
A Funny Thing Happened on the Way to the Stock MarketOn 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 As A Long Term InvestmentThe demand for world oil is increasing while world reserves are decreasing. This is a known fact.
Selling Strategies - Setting a Stop LossSometimes the best way of lowering exposure to risk is not to invest at all! However, when we make the decision to jump into the muddy waters of the stock market, its always a good idea to have a life jacket ready, just in case.We all have stories of that "must have" "can't lose" stock that looking back, we didn't really need to buy, and it definitely lost.
Small-Cap Stocks: The Beginning of the JourneyWhen an individual investor wants to roll up his sleeves and do some research in the pursuit of the next big winner in the stock market, the place many start is in the small cap sector.As with the other capitulation sizes (capitalization is a stock's market value), no one can completely agree on a precise definition, but corporations under $2 billion are often considered small caps.
Mid-Cap Stocks: Asset Class with an Identity CrisisMuch like the middle child, mid-cap stocks have long struggled to find their identity. Carved out from the upper echelons of the small caps and the lower end of the large caps, the mid-cap sector has a rough definition of stock with a market capitalization of greater than $2 billion, but less than $10 billion.
The Exclusive Club of Large CapsPicture 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.
Living Trust Investing: Income Considerations when the Grantor DiesA common problem I often see when working with living trust beneficiaries and trustees is the lack of attention in rethinking income strategies in the event of the grantor's death.When the grantor of a living trust dies, the trustee (especially a family member or close friend) sometimes feels reluctant to revise the portfolio, feeling it's an affront to the wishes of the deceased.
Dividend Reinvestment Plans: Investing on Automatic PilotIf you're like many investors who squander those small dividend checks from your stock portfolio, a Dividend Reinvestment Plan (DRP) might be just what you need. Just as its name implies, a Dividend Reinvestment Plan allows you to reinvest some or all of those dividends into more stock of the issuing company.
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.
A Stock Market Investment Plan that Never Lets You DownThe bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M.
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