| |
| |
|
|
Stocks & Mutual Funds Information |
|
|
|
How Much Information Do You Need?
You have decided to buy some stock or mutual funds, but wonder which one to buy. You need more information so you call your broker for advice. A so-called "full service" broker will bury you with all kinds of reports, analysis sheets and other pretty pieces of paper, but will probably try to sell you something that makes him the most commission. Let's see. What does Wall Street think you should know? Of course, you will want a company that is currently favorable or "hot" - like WorldCom used to be. Then you need to look at their financial statement that has been audited by a big accounting firm. - like Arthur Andersen. You really should check to see if they have any big outstanding financial obligations that have little asterisks next to them in the Annual Report - like under funded pension plans. Of course you will want to get their financial statement to check their P/E ratio. That's Price/ Earnings or how many years of earnings it will take to make back the price of the stock today. The lower that number the better. For many years the average has been about 14. If it is above 20 or 30, well ??? We won't factor in the rate of inflation that will dilute the buying power year after year. And there are lots of other numbers like this Wall Street says you should be studying. Maybe it is easier to buy a mutual fund. You can go to Morningstar for every bit of information about a fund you can think of. They will show the breakdown of the funds' portfolio, but that can easily be 6 months old. They do have those star ratings. From one to 5 stars, but I can't recall seeing any one star funds and hardly any 2 stars. Why? Well, I think they don't want to offend the fund manager even though he is not making money for his clients. In fact, they love to give 5 stars to funds that have had losing years one after another. Unfortunately some of their information is out of date. They do list all the stocks the fund owns, but the fund may have sold them so you can't tell for certain what they are investing in. Brokers want to send you reports, graphs, company updates, interim reports and I don't know what all, but stop and ask yourself, "If I can get this so can everybody else so what good is it?" Now you've got it. None. All that information will not tell you that after you buy it it will go up - and that's all you want to know. Basically there are two things you want to know. 1. Is it going up? 2. If it goes down where do I sell it to protect my capital? That's all the information you need. 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
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. Losses, not Profits, will Stop You from Trading in the Market Should the market turn against you, it is important that you design a system that will produce as much loss as you are prepared to take. This loss, known as drawdown, is the maximum amount by which your trading float will temporarily drop at anytime. 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. The POWER of a Proven Stock Investment Plan When you invest in the stock market for ever-increasing cash dividend income, verses trying to make a buck in the stock market, your mindset will change. There will no longer be a fear of losing money in the stock market. Wall Street Paradigm In 1960 an engineer working for a watch company in Switzerland discovered that a small crystal would vibrate at a constant rate. He found this was so accurate that it could be used to calibrate time so he took it to company management and said it would make an entirely new kind of watch that had no springs and no gears. A Penny for Your Stocks According to Investopedia Inc. the penny stock market has seen phenomenal growth this past decade. Frog In The Pot You remember the story about the frog that was put into a pot of cold water on the stove. He was not concerned. I Love You, Warren Buffet Sometime around 1980, can't remember exactly, there was a flight of money from many countries to Switzerland. The clock makers had so much money pouring in that the banks took interest rates to zero and even for a period of time were actually making you pay ½% interest to them to put your money in their banks. 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. Eternal Sunshine There is a current movie entitled "Eternal Sunshine of the Spotless Mind". It is about a man who has had a painful love affair and will do anything to rid his mind of those pain thoughts of a former love. 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. 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. Robert Rodriguez Weathers the Stock Market Robert Rodriguez likes to buy stocks at their lows. When there are not enough stocks hitting new lows, he closes his fund and piles up cash. Trapeze Artist - Swinging with the Stock Market When we go to the circus we see a trapeze artist working on a high wire or swing either alone or with other athletes. They know what they are doing because of constant practice, but every once in a while there can be a mistake, even a small one that can cause one of them to fall. Risk Control Everything 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. One Way Street Ever 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. 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. The Seven Mistakes All Novice Traders Make and How to Correct Them We learnt the following the hard way! If any of these things applies to you, don't worry - there is an easy solution!MISTAKE ONELack of Knowledge and No PlanIt amazes us that some people expect to trade the stock market successfully without any effort. Yet if they want to take up golf, for example, they will happily take some lessons or at least read a book before heading out onto the course. Stock Chart Reading As 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. The Club Yesterday I received my monthly issue of MONEY magazine. This issue has the special feature called "The Ultimate Investment Club" that highlights their picks for the top mutual fund managers.
|
| home | site map |
| © 2006 |