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Stock Market
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Speaking
of Stock Market Rallies
This morning's classic E-mail question wondered: "Is this the
real thing?" The reference was to the Media applauded five
month spurt in the Dow Jones Industrial Average (DJIA), an advance
to the highest levels in about four years, but still miles from
an All Time High (ATH). The meaning inside was much, much greater
--- speaking as it does to some basic misconceptions many people
have in their approach to stock market investing…
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the full article…
The
Dow Jones Industrials - Is It Still a Blue Chip Average?
In addition to a well thought out investment plan, successful equity
investing requires a feel for what is going on in the real world
we refer to as "the market". To most investors, the DJIA provides
all of the information they think they need, and they worship it
mindlessly --- thinking it has mystical predictive and analytic
powers far beyond the scope of any other market number…
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the full article…
S
& P 500 +8%; IGVSI +13%; MCIM +20%
The Market Cycle Investment Management model has outperformed the
popular investment indices since it was first developed in 1970.
It features an approach that embraces market volatility; selects
securities using strict quality, diversification, and income standards;
and operates under strict disciplines for asset allocation, buying
securities, and profit taking…
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the full article…
What
are Closed End Funds (CEFs)?
A Closed End Fund (CEF) is a publicly traded investment company
that invests in a variety of securities such as stocks, bonds, preferred
stocks, real estate, mortgages, oil and gas royalties, etc. The
variety of sectors, classifications, and geographical representation
is every bit as confusing as it is with traditional funds, but the
advantages are easy to understand…
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the full article…
Stock
Market Corrections - Shop At The Gap
A correction is a beautiful thing, simply the flip side of a rally,
big or small. Theoretically, even technically I'm told, corrections
adjust equity prices to their actual value or "support levels".
In reality, it's much easier than that…
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the full article…
A
Preemptive Portfolio Protection Strategy: Investment Retrospective
A participant in the morning Working Capital Model (WCM) investment
workshop observed: I've noticed that my account balances are returning
to their (June 2007) levels. People are talking down the economy
and the dollar. Is there any preemptive action I need to take?…
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the full article…
How
is Your Investment Portfolio Doing? 7 Long-Term Indicators.
Before Wall Street and the media combined to make investors think
of calendar quarters as "short-term" and single years
as "long-term", market cycles were used as true tests
of investment strategies over the long haul. Bor-ing…
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the full article…
Investment
Grade Value Stock Index (IGVSI)
The Investment Grade Value Stock Index is a barometer of a small
but elite sector of the stock market. Some Investment Grade Value
Stocks are included in all averages and indices, but even the Dow
Jones Industrial Average includes several issues that are below
Investment Grade and very few boast an A+ S & P rating…
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the full article…
Crisis
Investing - Three-Pronged WCM Strategy
One of the great things about being a professional investor is the
opportunity one has to apply his or her long-term experience to
the investment environment that is unfolding (or coming unglued)
in the present…
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the full article…
How to minimize risk when investing
into stocks
Most investment mistakes are caused by basic misunderstandings of
the securities markets and by invalid performance expectations.
The markets move in totally unpredictable cyclical patterns of varying
duration and amplitude…
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the full article…
When All Stocks Are Value Stocks
Value stocks are those that tend to trade at lower prices relative
to their fundamental characteristics than their more speculative
cousins, the growth stocks; they have higher than usual dividend
yields and lower P/E and P/B ratios…
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the full article…
Article/Letter/Op Ed Submission:
Wall Street Conventional Wisdom and Stock Market Corrections
During every correction, I encourage investors to avoid the destructive
inertia that results from trying to determine: how low can we go;
how long will this last? Investors who add to their portfolios during
downturns invariably experience higher Market Values during the
next advance…
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the full article…
Article/Letter/Op Ed Submission:
The Investor's Creed and Your Investment Portfolio
Growing up at Lake Hopatcong in Northwest Jersey, the most popular
entertainment around was the rickety old Roller Coaster at Bertrand
Island Park. The excitement would build as you ascended the first
peak, anticipating the breathtaking plunge; eyes wide open (or shut),
screaming from the thrill with a white-knuckled grip on either the
safety bar or your date's hand…
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the full article…
How Much Is Your Financial Consultant
Really Worth?
How Much Time Does A Big Time Investment Firm's Financial Consultant
Devote to Your Account? Most financial consultants that work for
a large global investment firm need about U.S. $50 million of assets
under management to make a decent living in a metropolitan region…
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the full article…
How To Build Wealth During Turbulent
Markets, Part II
I’m not really sure why but the private client wealth divisions
of large investment firms by and large seem to ignore year after
year investments in precious metals such as gold, silver, palladium,
zinc and others…
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the full article…
How To Build Wealth During Turbulent
Stock Markets, Part I
In mid-2006, the global markets corrected a great deal. In the U.S.,
the Dow plummeted 4%, the Nasdaq about 6%, and the S&P 500 about
5% in a single week. European stocks posted their biggest drop since
May 2003…
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the full article…
The Surging Interest in Dividends,
Especially Among Boomers
This article explains the growing interest in dividends among stock
investors, especially baby Boomers looking for income in retirement…
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the full article…
Welcome to the BIG Buy Low
Every correction is the same, a normal downturn in one of the Markets
where we invest. There has never been a correction that has not
proven to be an investment opportunity. You can be confident that
the Federal Reserve, as hypnotized as it is with keeping inflation
under control, is not going to cause either a financial panic or
a prolonged recession with tight money and high interest rate policies.
While everything is down in price, as it is now, there is little
to worry about. When the going gets tough, the tough go shopping…
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the full article…
On Formulaic Investing
One question almost every investor asks at some point is whether
it is possible to achieve above market returns by selecting a diversified
group of stocks according to some formula, rather than having to
evaluate each stock from every angle. There are obvious advantages
to such a formulaic approach. For the individual, the amount of
time and effort spent caring for his investments would be reduced,
leaving more time for him to spend on more enjoyable and fulfilling
tasks…
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the full article…
8 Tried and True Commodity Stock
Trading Application Rules
Some commodity Stock Trading Application rules are made to be broken,
but when you’re trading, there are some rules are meant to
be followed. Here some of the Stock Trading Application rules that
I consider the most important principles of trading. I suggest that
you make a copy of them and place them in your trading diary or
tape them to your desk, so that you’ll always remember to
follow them…
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the full article…
How May Continued Global Crises
Affect the Stock Market?
Nearly five years have passed since the devastating 9/11 attacks
on the United States, and it appears that time and perspective may
have helped investors learn difficult lessons about staying calm
amid the uncertainty that terror generates. On July 7, when a string
of bombings hit the London public transportation system, U.S. markets
opened down but spent the rest of the day recovering, as major U.S.
stock indexes finished the day on an upward trend…
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the full article…
12 Rules of Investing
RULE 1: WHY DO YOU INVEST?
Make more money, this is the answer to most people. If your reason
is to make more money, then ask yourself these three questions…
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the full article…
The Danger Of Inflexible Enterprises
Whenever a large investment has been made in a particular area,
whenever there is a lot capital, people, and ego tied up with some
operation, the transition away from that operation is apt to be
far slower than what an objective observer would have expected…
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the full article…
Stock Market Window Dressing:
The Art of Looking Smart!
As investors, and we all are investors these days, it is important
that we understand the idiosyncrasies of the Stock Market pricing
data we use to help us in our decision making efforts. On Wall Street,
investing can be a minefield for those who don't take the time to
appreciate why securities prices are at the levels that appear on
quarterly account statements. At least four times per year, security
prices are more a function of institutional marketing practices
than they are a reflection of the economic forces that we would
like to think are their primary determining factors…
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the full article…
Relax, A Volatile Stock Market
Is Your Dearest Friend
Most people never forget their first love. I'll never forget my
first trading profit! But the $600 (1970 dollars) I pocketed on
Royal Dutch Petroleum was not nearly as significant as the conceptual
realization it signaled! I was amazed that someone would pay me
that much more for my stock than the newspaper said it was worth
just a few weeks earlier! What had changed?…
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the full article…
In Value Stock Investing, Quality
is Job One
How much financial bloodshed is necessary before we realize that
there is no safe and easy shortcut to investment success? When do
we learn that most of our mistakes involve greed, fear, or unrealistic
expectations about what we own? Eventually, successful investors
begin to allocate assets in a goal directed manner by adopting a
realistic Investment Strategy…
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the full article…
Mismanagement At The New York
Times
The New York Times Company (NYT) isn’t just reporting the news –
it’s making the news. At yesterday’s annual meeting, shareholders
withheld 28% of their votes for the four directors elected by holders
of the company’s common stock. Nine other directors are elected
by holders of the Class B shares, effectively granting control of
the company to a group holding less than a 1% economic interest
in the business…
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the full article…
The Dow Jones Industrial Average:
Failing the Average Investor
In addition to a well thought out Investment Plan, successful Equity
investing requires a feel for what is going on in the real world
that we all refer to as "The Market". To most investors, the DJIA
provides all of the information they think they need, and they worship
it mindlessly, thinking that this time tattered average has mystical
predictive and analytic powers far beyond the scope of any other
market number…
Read
the full article…
What is Value Investing?
Different sources define value investing differently. Some say value
investing is the investment philosophy that favors the purchase
of stocks that are currently selling at low price-to-book ratios
and have high dividend yields. Others say value investing is all
about buying stocks with low P/E ratios. You will even sometimes
hear that value investing has more to do with the balance sheet
than the income statement…
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the full article…
An Analysis of Lexmark (LXK)
In 2005, Berkshire Hathaway bought about a million shares of Lexmark.
I haven't followed this story closely, but I assume the stock was
purchased by Lou Simpson rather than Warren Buffett. I have only
two reasons for believing this: the total purchase was small relative
to Berkshire's investable assets and the Lexmark purchase is typical
of Simpson's investment philosophy (or at least, what little I can
glean about his investment philosophy from his past purchases).
Regardless of who actually makes the purchases, a new Berkshire
holding always draws a lot of commentary…
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the full article…
Investment Strategy: The Investor's
Creed
Fascinating, isn't it, this stock market of ours, with its unpredictability,
promise, and unscripted daily drama! But individual investors are
even more interesting. We've become the product of a media driven
culture that must have reasons, predictability, blame, scapegoats,
and even that four-letter word, certainty. We are a culture of investors
where hindsight is rapidly replacing the reality-based foresight
that once was flowing in our now real-time veins…
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the full article…
Steal Warren Buffet`s Stock
Market Lesson Plans?
Why should you want to steal someone else`s stock market lesson
plans?
First, let me tell you that a trading plan is only useful if you
follow it. Following your plan will make you successful, yet many
traders circumvent the stock market lesson plans that they have
carefully created…
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the full article…
The Idiots Guide To Back Testing
For Confidence
After you`ve set your initial stop loss, chosen your method for
calculating your trailing stop loss, and implemented all your money
management rules, there is one last thing you should do; you should
begin back testing your system…
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the full article…
Stock Option Trading Millionaire
Principles
Having been trading stocks and options in the capital markets professionally
over the years, I have seen many ups and downs.
I have seen paupers become millionaires overnight…
And
I have seen millionaires become paupers overnight…
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the full article…
Could an Oil Slick Trip Up Stock
Investors in 2006?
After generally rallying for the last 2 or 3 months, stocks suddenly
ran into an unexpected roadblock. The Dow Jones Industrial Average
(DJIA) had climbed to within about 6% of its all-time high and other
indexes, while not as close to peak historical levels, had risen
in tandem…
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the full article…
The Case for Value Stock Investing...
What If?
Wall Street Institutions pay billions of dollars annually to convince
the investing public that their Economists, Investment Managers,
and Analysts can predict future price movements in specific company
shares and trends in the overall Stock Market…
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the full article…
Avoid Day Trading Your Dollars
Down the Drain
Day traders quickly buy and sell stocks during the day, hoping their
stocks will continue climbing or falling in value for the seconds
to minutes they own the stock. This allows them to lock in quick
profits. Day traders usually buy on borrowed money, hoping that
they will reap higher profits through leverage…
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the full article…
Will Santa Visit Stock Investors
in January?
Bullish investors would likely have rather received a lump of coal
in their stockings, given the prevailing lofty level of energy prices,
than the uncharacteristically lackluster performance delivered them
by the stock market in the waning days of 2005. What made the sour
ending so unusual was its defiance of the well-documented normal
tendency for stocks to rise in December, particularly near the end
of the month…
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the full article…
How To Buy Stocks That Are Hot
With No Effort
Even traders want to be trendy when they buy stocks. Many traders
make trades because of public opinion, not because the trade itself
makes sense. When a particular stock seems popular, they rush in
so they don`t feel they`ve missed an opportunity. As a result they
end up buying at a price point where the trade can`t possibly work
out. You should always avoid the emotion of the HOT stock…
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the full article…
Fiscal Measurements
A former colleague at a major stock brokerage firm always confused
"fiscal" with "physical". On June 30th, he would talk about the
close of the "physical year". Just a mental block for an intelligent
man. Fiscal year-end differs for corporations with most ending June
30th while others use December 31st. Fiscal is fancy jargon for
"show me the money"…
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the full article…
Metastock Part 2: Designing
a Trading System in MetaStock
In Part 1 of Designing a Trading System in MetaStock, I had discussed
the major components you needed to be able to track to create a
mechanical entry system. These were measures of price, liquidity,
trend, and volatility. The question now is, how do we code this
into MetaStock?…
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the full article…
Now That the Stock Market Made
an October Low, Where Will it Go?
A lot has changed in more than a century since Mark Twain first
uttered his memorable quote, but with no less than 14 important
stock market lows established in the month of October just since
the launch of daily S&P indexes in 1928 (a disproportionately large
17% of all bottoms), it appears Mr. Twain was on to something…
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the full article…
Securities commission
Securities commission is a general term used for a government department or agency responsible for financial regulation of securities products within a particular country. Its powers and responsibilities vary greatly from country to country, but generally cover the setting of rules as well as enforcing them for financial intermediaries and stock exchanges.…
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The Stock Market Report That
Wall Street Does Not Want You To Read
The best way to maximize your profits is to be prepared to give
some back to the Stock Market. When most traders first hear this,
they are a little taken back. Why would you give any of your profits
back to the Stock market; because you are never going to be able
to exit right at the peak of the Stock market trend. But, you can
still stay with the trend as it develops, and let your profits run
in the Stock market. Then, when the price turns, you can exit…
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the full article…
Professional Stock Market
Advice Reveals Most Common Trading
The best Stock Market advice you will ever read is to learn from
mistakes when someone else has made them. So, this stock market
advice list I made a list of some of the most common trading mistakes
that are made. Even I`ve made some of these. If you have already
made some of the mistakes, you can rest assured that you aren`t
alone in making them. If you haven`t made them, then here`s a way
to get around having to learn by making the mistakes yourself, by
reading my stock market advice list…
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the full article…
A New Wall Street Line Dance:
Performance
It matters not what lines, numbers, indices, or gurus you worship,
you just can't know where the stock market is going or when it will
change direction. Too much investor time and analytical effort is
wasted trying to predict course corrections. even more is squandered
comparing portfolio Market Values with a handful of unrelated indices
and averages. If we reconcile in our minds that we can't predict
the future (or change the past), we can move through the uncertainty
more productively…
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the full article…
Penny Stock Strategies
Why should the rich guys have all the fun? The small investor can
seek out huge returns too...if they know how.
Technical analysis that uses statistics for forecasting price fluctuations
is one approach. However, because it is difficult to track changes
in fractions of a penny, there simply isn’t enough data to be able
to analyze. Therefore, you have to keep an ear to the ground when
you trade penny stocks…
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the full article…
What Makes A Good Surety
Bond Producer?
The difference between bond producers can be night and day. A good
producer knows the surety industry and the construction industry
(for contract bond producers). For contractors, a bond producer
is a key to the door of suretyship. The differences in contract
producers could be the difference of approval and declination, bond
line size, collateral requirements versus no collateral, etc…
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the full article…
Why Do I Need A License Surety
Bond?
There are thousands of different surety bonds in the United States
alone. One of the most common types are license bonds. Simply put,
these bonds are required by the government in order to obtain a
license to legally operate a business…
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the full article…
Investing Stock Market ABC’s
While most folks today trust mutual funds and their professional
managers with their investments, it’s still important to understand
the basics of the stock market. Although investing in individual
stocks may not be right for everyone, a basic understanding of the
stock market is essential to understanding the workings of our economy
and business sector…
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the full article…
The Uranium Bull Market Keeps
Getting More Bullish
China Demand for Uranium, World Growth in Electricity Demand to
Drive Uranium Price Higher.
Industry expert says all new production already factored in uranium
price “We are consuming far more uranium than we are producing worldwide,”
explained David Miller, Wyoming legislator and recently appointed
president of Strathmore Resources (TSX-V: STM; OTC: STHJF.PK)…
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the full article…
Stock Options: Limited Loss
and Unlimited Profit
Many people believe that the stock market can make you rich one
day, but also make you bankrupt the next. Well, how eould you like
to know about a method of stock trading that completely saves you
from unlimited loss, but still leaves the door open for unlimited
profit? That method is buying and selling stock options. How to
trade stock options would best be explained using the following
example…
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the full article…
Metastock Part 1: Relative
Strength Comparison (RSC) The Key Success Tool In Trading By Stock
Market Sectors
Within this report I`ll show you how you can find these profitable
trading opportunities with MetaStock. You`ll be able to make use
of techniques usually only used by professional traders, such as
the Relative Strength Comparison. The basis of the RSC (Relative
Strength Comparison) is found in sector analysis…
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the full article…
How to Read Stock Market
Quotes
The stock market quote is the basic collection of numbers an
investor must understand to achieve success in the stock market.
It is a list of prices for certain stocks at one point within the
trading day. In the past, stocks were quoted in fractions, but now,
most exchanges use decimals. Stock market quotes are found in newspapers,
as well as online. Stock quotes are updated regularly during the
trading day…
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the full article…
Understanding Fixed Income
Securities: Expectations
I’ve come to the conclusion that the Stock Market is an
easier medium for investors to understand (i.e., to form behavioral
expectations about) than the Fixed Income Market. As unlikely as
this sounds, experience proves it, irrefutably. Few investors grow
to love volatility as I do, but most expect it in the Market Value
of their equity positions. When dealing with Fixed Income Securities
however, neither they nor their advisors are comfortable with any
downward movement at all…
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the full article…
3 Steps To Profitable Stock
Picking
Stock picking is a very complicated process and investors have
different approaches. However, it is wise to follow general steps
to minimize the risk of the investments. This article will outline
these basic steps for picking high performance stocks…
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the full article…
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