Economics, Values, and InvestingEconomics, Values, and InvestingReporting on sinking state of the US economy, what lead to this point, and what we can do to help ourselves. Discussion also includes business, starting business entities, economic trends, commodities, real estate, stock investments, other forms of i
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The Future of Gold
2008-03-29 14:04:00 The Future of Gold by Larry Edelson Dear Subscriber,When you've been trading the gold market for nearly 30 years like I have, you develop a sixth sense for the precious yellow metal. You can hear it speak to you. You can feel its rhythm. You can interpret its signals. And let me tell you, gold can anticipate otherwise unforeseen events better than any other investment I know of. What is gold telling me right now? That all is not well with the world ? that there are major problems under the surface. More on that in a moment. First, a little history ? How Gold and the DollarGot Irrevocably Separated It's 1947. We're looking into a London office on St. Swithin's Lane. Inside are six members of the London Gold Committee. A bullion expert from N. M. Rothschild & Sons says, "Gentlemen, it is eleven o'clock. We begin." Each member immediately calls his office on a special direct telephone line to determine how much g... More About: The Future
Is it over?
2008-03-27 12:32:00 Is it over?by Larry EdelsonWith the current action in the markets, there are two main questions that every investor is asking: Has the subprime crisis passed? And is the commodity boom over?In this issue, I'll give you my answers, plain and simple, to both questions ? via the fundamental forces behind each and some old-fashioned common sense. So let's get started ...First, Has the Subprime Crisis Passed?No. I think it's far from over. Here are five reasons why ...#1: We're only nine months into the crisis. Financial crises are rarely ever that short. And the sheer size and scope of the subprime crisis makes this larger than any crisis seen since the Great Depression, almost guaranteeing that it's not even remotely over.#2: Banking experts put the losses at more than $600 billion. But only $180 billion has been written off so far. Even if the bankers are wrong, and there is only a total of $300 billion in losses, then we're still just slightly more than halfway through the cris... More About: Gold , Commodities , Trends , Interest Rates , Markets
5 Reasons Why the Federal Reserve is a Failure!
2008-03-20 17:59:00 No single quasi-private institution has as much influence on the worldwide economy as the Fed, and as a leader can head this institution for an indefinite term, no one man is as influential on the markets as the Fed Chair. The Dollar has plummeted in the currency markets and shows few signs of recovery or even stabilization. The new style and policies that accompanied Bernanke into office have made the Forex markets more volatile than ever and even more difficult to predict. An examination of what has gone awry can help Forex traders understand this new era at the Fed. 1. The Fed ignored the signsThe Fed has stated that it will never act as a regulator in any financial market, but it has the duty to use its influence for reform when it sees signs of consumer exploitation. Since as early as 2001, at least two senior officials inside the Fed urged its board to call for tighter regulations in the housing markets, especially in abuses that were clearly evident in the handling subprime... More About: Trends , Interest Rates , Markets , Federal Reserve , Failure
Getting Rich, The Science of (Part 5)
2008-03-11 22:22:00 Getting Rich , The Science of (Part 5)Is Opportunity Monopolized?Wallace D Watttles (1860-1911) NO man is kept poor because opportunity has been taken away from him; because other people have monopolized the wealth, and have put a fence around it. You may be shut off from engaging in business in certain lines, but there are other channels open to you. Probably it would be hard for you to get control of any of the great railroad systems; that field is pretty well monopolized. But the electric railway business is still in its infancy, and offers plenty of scope for enterprise; and it will be but a very few years until traffic and transportation through the air will become a great industry, and in all its branches will give employment to hundreds of thousands, and perhaps to millions, of people. Why not turn your attention to the development of aerial transportation, instead of competing with J.J. Hill and others for a chance in the steam railway world? It is quite true that if you a...
Payday Loans and Consumer Spending: A Wise Choice of Investment?
2008-02-27 02:00:00 Many investors have heard that investing in payday loans is a good choice for a large ROI. Is this truly the case, though? What sort of return can an investor reasonably expect to make from an investment in a payday loan company?Payday loans are a high yield investment form that much is true. There is a large margin of profit enjoyed by both investor and the payday loan company. This is due to the amount of interest that the consumer must pay to get the loan and the fact that these loans are frequently rolled over, generating more interest payments.Is it wise to sink money into these companies, though? That is a question with a mixed answer, unfortunately. While the investment may, indeed, yield good results, it can also go badly wrong. Why, you ask? If the consumer who takes out the payday loans simply does not repay the loan, then the investor and the loan company are out the money. Debt collection may work, but it can only be used so far.Another factor that should influe... More About: Investment , Loans , Consumer , Investing , Spending
Hyperinflation Is Back
2008-02-26 18:33:00 Hyperinflation Is Back , and It Could Be Worse this Time Around!The U.S. Consumer Price Index (CPI) jumped 0.4% in January for a 12-month overall inflation rate of 4.4%, up from the already-too-hot 4.1% inflation reported in December. What's more, this is the third month in a row that the annual inflation rate has been above 4%.Energy prices increased 19.6% over the last 12 months. And over the last three months, they soared a whopping 43.6%!It would be a huge mistake to blame all that inflationary pressure on energy, though. After all, it represents just 10% of the CPI.Prices for the other 90% must be on fire, too!And as Federal Reserve Bank of St. Louis President William Poole warned, further interest rate cuts may accelerate inflation to an even more unacceptable level."Taking out insurance against certain risks is not free. At any given time, policy makers could pursue a powerfully expansionary policy to all but eliminate the possibility of a significant recession in the year ah... More About: Trends , Inflation
U.S. Credit Markets Collapsing!
2008-02-18 15:13:00 The U.S. credit markets, the giant growth engine that powers the American economy, are collapsing ... with few credit sectors spared from damage, few investors escaping losses, and little hope of federal action that's quick or strong enough to make a major difference. Here's what's happening ... First and Foremost, the Fall of The Nation's Three Largest Bond Insurers Is Accelerating... And now, the critical watershed event that I said would trigger the next phase ? the collapse of the bond insurers' triple-A ratings ? is here in aces and spades. Without the triple-A rating, their whole reason to exist falls by the wayside: They cannot enhance the credit of bond issuers. They cannot do more business. They may as well close their doors and go home. The facts: Financial Guarantee Insurance Co. (FGIC), the nation's third largest, just lost its triple-A rating last week. Moody's literally gutted its rating by a full six notches in one fell swoop.At the same time, Moody's warne... More About: Credit , Trends , Markets
The Greenspan Put is Dead, Long Live the Greenspan Put
2008-02-06 21:47:00 After rallying 11.5% into Feb 4 following the Jan 30 FOMC announcement, the stock market has already given up 4.9% of those gains inside two days. As mentioned earlier, the Fed stimulus might prove meaningless in an environment where market participants feel the Fed is behind the curve rather than ahead of the curve. "Accommodate Away" seems to be the Ho-Hum refrain as the feeling grows that it may be too late for intervention to work in a meaningful way and thus kick the stock market to the gutterThe amazing cushion that the stock market does enjoy, and should be a great comfort to equity investors is that the SP500 is yielding 2.4% priced at 1350 in the futures market while the 2 year note only yields 2.0% today. I am not sure that has ever happened in my investing career before. If there is no severe recession forthcoming, then stock market should be an incredible bargain at these prices.So, if this is just a Stress Test, Then 1325-1330 Should Probably Hold in the E-mini'sThe SP... More About: Markets , Live , Dead , Long , Greenspan
Can Overindebtedness in the Housing Industry Lead to a Deflationary Spiral
2008-02-06 21:24:00 February 3 2008John BougearelSuccessfulTradingTips.com"No emergency can justify the return to inflation." Ludwig Von Mises said eons ago. So what would Von Mises say in response to the current cycle of aggressive monetary easing by the Fed, I wonder?As bad as the inflationary pressures are emanating from the energy and commodity sectors, there is a strong deflationary headwind playing out in the housing market and is complicated with overlevered homeowners that have taken on too much debt that they can't handle. The situation is gripping the US economy in a manner similar to the Great Depression during the early 1930's.I mean, why else would the Fed so aggressively and so suddenly attempt to stimulate the economy with excessive monetary ease and advocate swift and decisive government intervention with fiscal stimulus? Do you think they don't know the moral hazards of what they are doing? And why did George Soros just last week go on record as saying that the US economy has reache... More About: Industry , Trends , Markets , Housing , Lead
Does Blogging Pay?
2008-02-05 21:53:00 Can you really make money blogging?I posted this question on linkedin.com. If your are a member here is the link - ClickHere are some interesting answers - You decide..."Some bloggers do make money but not from adsense. Most of it from direct advertizing on their sites or Text Link Ads. Text Link Ads may not be as popular now due to Google coming down on blogs using them as it skews their search results. Affiliate sales. Paid Posting or similar programs on popular blogs can reach $400 or even more.To make real money with a blog you need to have traffic. At least a couple of thousand unique visitors a day. Otherwise all you will get is pennies."Consultant, Websites and Blogs, Entrepreneur"In the end, blogging is best used as a means for personal branding. Especially, if you are involved in the internet industry. "Viral Marketing SEO"My blog consistently generates $200 a month from Adsense... "Enterprise Architect"The amount of money made solely off of the blog depends on the t... More About: Trends , Blogging
The Philosophy of Money (humor)
2008-01-31 15:11:00 The Philosophy of Money * "Money is not the most important thing in the world. Love is.Fortunately, I love money."(Jackie Mason)* "In God we trust. All others must pay cash."(American Saying)* "Money is better than poverty, if only for financial reasons."(Woody Allen)* "Sex is like money; only too much is enough."(John Updike)* "If you owe the bank $100 that's your problem. If you owe thebank $100 million, that's the bank's problem"(JP Getty)* "It doesn't matter if you're black or white... the only colorthat really matters is green."(Family Guy)* "The only way not to think about money... is to have a greatdeal of it."(Edith Wharton)* "If you want to know what God thinks about money, just look atthe people He gives it to."(Old Irish saying)* "Be rich to yourself... and poor to your friends."(Juvenal)* "If you would know the value of money, go and try to borrow some."(Benjamin Franklin)* "Bart, with $10000, we'd be millionaires! We could buy all kindsof useful things like... love... More About: Humor
How Bad Is the U.S. Economy?
2008-01-24 17:32:00 How Bad Is the U.S. Economy ? - Money & Markets , Janury 24 2008It's so bad that more than $750 billion has been printed and dumped onto the U.S. economy by central banks around the world.It's so bad that President Bush, Treasury Secretary Henry Paulson, and virtually all of the 2008 Presidential candidates ? Democrats and Republicans alike ? are calling for as much as $150 billion in immediate tax cuts.Treasury Secretary Paulson and President Bush are calling for immediate tax cuts.Treasury Secretary Paulson and President Bush are calling for immediate tax cuts.Some 78 publicly traded companies filed for bankruptcy in 2007.Four major financial institutions have begged to secure capital infusions from the likes of Abu Dhabi, Singapore, China, Kuwait, and more ? to stave off insolvency.And all this is just the beginning of the squandering of America!The U.S. economy is suffering from a deep underlying disease ? debt-addiction. It's been a financial disaster waiting in the wings ... More About: Trends
Getting Rich, The Science of (Part 4)
2008-01-02 20:26:00 Is Opportunity Monopolized? (Part a)NO man is kept poor because opportunity has been taken away from him; because other people have monopolized the wealth, and have put a fence around it. You may be shut off from engaging in business in certain lines, but there are other channels open to you. Probably it would be hard for you to get control of any of the great railroad systems; that field is pretty well monopolized. But the electric railway business is still in its infancy, and offers plenty of scope for enterprise; and it will be but a very few years until traffic and transportation through the air will become a great industry, and in all its branches will give employment to hundreds of thousands, and perhaps to millions, of people. Why not turn your attention to the development of aerial transportation, instead of competing with J.J. Hill and others for a chance in the steam railway world?It is quite true that if you are a workman in the employ of the steel trust you have very lit... More About: Science , Rich
Getting Rich, The Science of (Part 2)
2007-11-05 15:31:00 There is A Science to Getting Rich (Part 1)THERE is a Science of getting rich, and it is an exact science, like algebra or arithmetic. There are certain laws which govern the process of acquiring riches; once these laws are learned and obeyed by any man, he will get rich with mathematical certainty.The ownership of money and property comes as a result of doing things in a certain way; those who do things in this Certain Way, whether on purpose or accidentally, get rich; while those who do not do things in this Certain Way, no matter how hard they work or how able they are, remain poor.It is a natural law that like causes always produce like effects; and, therefore, any man or woman who learns to do things in this certain way will infallibly get rich.That the above statement is true is shown by the following facts:Getting rich is not a matter of environment, for, if it were, all the people in certain neighborhoods would become wealthy; the people of one city would all be rich, while ... More About: Values
Getting Rich, The Science of (Part 2)
2007-11-05 15:31:00 There is A Science to Getting Rich (Part 1)THERE is a Science of getting rich, and it is an exact science, like algebra or arithmetic. There are certain laws which govern the process of acquiring riches; once these laws are learned and obeyed by any man, he will get rich with mathematical certainty.The ownership of money and property comes as a result of doing things in a certain way; those who do things in this Certain Way, whether on purpose or accidentally, get rich; while those who do not do things in this Certain Way, no matter how hard they work or how able they are, remain poor.It is a natural law that like causes always produce like effects; and, therefore, any man or woman who learns to do things in this certain way will infallibly get rich.That the above statement is true is shown by the following facts:Getting rich is not a matter of environment, for, if it were, all the people in certain neighborhoods would become wealthy; the people of one city would all be rich, while ... More About: Values
Getting Rich, The Sience of (Part1)
2007-10-29 17:29:00 The Right To Be Rich Part 1WHATEVER may be said in praise of poverty, the fact remains that it is not possible to live a really complete or successful life unless one is rich. No man can rise to his greatest possible height in talent or soul development unless he has plenty of money; for to unfold the soul and to develop talent he must have many things to use, and he cannot have these things unless he has money to buy them with.A man develops in mind, soul, and body by making use of things, and society is so organized that man must have money in order to become the possessor of things; therefore, the basis of all advancement for man must be the science of getting rich.The object of all life is development; and everything that lives has an inalienable right to all the development it is capable of attaining.Man's right to life means his right to have the free and unrestricted use of all the things which may be necessary to his fullest mental, spiritual, and physical unfoldment; or, i... More About: Values
Blame it on the Dollar... But not all of it.
2007-10-21 19:46:00 The days when the U.S. government backed the dollar with gold or silver bullion are long gone. Also gone are the days when the U.S. Federal Reserve or the U.S. Treasury made a real effort to support the dollar in foreign exchange markets. Although the U.S. Dollar backed by the supposed "good faith and credit" of the U.S. government, that and five bucks usually won't even get you a full meal at a fast food restaurant.Those are the fundamental reasons the dollar is at its lowest level in history, and still falling. It's also a major reason why natural resources and other commodities are exploding in value. Another reason for the commodity explosion is the dwindling supplies of critical resources among them oil, grain, metals. No new mines have been built in the US in 20 years. The world is beginning to consume more grain than it produced. Wheat stockpiles have fallen to a 34-year low. Also consider that countries such as China and India have a new found wealth and the consumers are ... More About: Trends , Inflation , Markets , Blame
Great Service Is a Choice
2007-10-11 18:40:00 Great Service Is a Choice (Excerpt from The Simple Truths of Service)No one can make you serve customers well. That?s because great service is a choice. Years ago, my friend, Harvey Mackay, told me a wonderful story about a cab driver that proved this point. He was waiting in line for a ride at the airport. When a cab pulled up, the first thing Harvey noticed was that the taxi was polished to a bright shine. Smartly dressed in a white shirt, black tie, and freshly pressed black slacks, the cab driver jumped out and rounded the car to open the back passenger door for Harvey. He handed my friend a laminated card and said: ?I?m Wally, your driver. While I?m loading your bags in the trunk I?d like you to read my mission statement.? Taken aback, Harvey read the card. It said: Wally?s Mission Statement: To get my customers to their destination in the quickest,safest and cheapest way possible in a friendly environment. This blew Harvey away. Especially when he noticed that the inside of the... More About: Great , Values
Due Diligence
2007-10-06 21:55:00 Never invest in anything because it sounds good. Do your Due Diligence first. Due Diligence (DD) is the process where an investor investigates the attractiveness of an opportunity and assesses the quality of the management team and the key risks associated with the investment. It is the best method of verifying the validity of a particular situation or opportunity. It helps to discover everything about the investment before investing your money. Due diligence is probably the most critical stage of investing. It is a complete examination and evaluation of the investment situation. The DD process should begin the moment an opportunity becomes of interest to you. Your goal is to make certain that you uncover every potential and pitfall of the opportunity before you invest. The Internet is a great tool that can help you to investigate.Consider researching all of the following that apply:Check WHOIS information: Domain registration data of a company?s website. Are they trying to hide?D... More About: Fraud , Terminology
The Next "Big Thing"
2007-09-04 19:10:00 Everyone always asks whet the next 'big thing' is going to the be. Although some of the following list sounds a bit off, it is still worth taking into consideration. Visit the above link to get all the details.Here are the editors' top 10 forecasts from Outlook 2007: 1. Generation Y will migrate heavily overseas. By 2025, 75% of Americans will live on the country?s coasts.2. Dwindling supplies of water in China will impact the global economy.3. Workers will increasingly choose more time over more money. 4. Outlook for Asia: China for the short term, India for the long term. 5. Children's "nature deficit disorder" will grow as a health threat. 6. We?ll incorporate wireless technology into our thought processing by 2030. 7. The robotic workforce will change how bosses value employees.8. The costs of global-warming-related disasters will reach $150 billion per year. 9. Companies will see the age range of their workers span four generations. 10. A rise of d... More About: Trends , Thing
Stock Selection Considerations Part II
2007-08-23 23:21:00 In Stock Select ion Cons iderations part 1 (below), I listed the 15 quesitons Philip Fisher used to evaluate a company. For Stock Selection Consideration part 2, I will list five "Don'ts" that Philip Fisher also listed for investors:1. Don?t buy into promotional companies.2. Don?t ignore a good stock just because it is traded ?over-the-counter.?3. Don?t buy a stock just because you like the ?tone? of its annual report.4.Don?t assume that the high price at which a stock may be selling in relation to its earnings is necessarily an indication that further growth in those earnings 5. Don?t quibble over eighths and quarters. More About: Investing , Part
Stock Selection Considerations
2007-07-25 19:00:00 There are 2 legendary icons that influenced the investing style of Warren buffet: Benjamin Graham & Philip Fisher.In the book ?In Common Stock s and Uncommon Profits?, Philip Fisher wrote of 15 questions he used to evaluate a company. I?m not even going to attempt to give any ballpark answers because the answers are so subjective and vary in degree of importance among investors. The answers will vary with the investor's goals, the company's sector, etc. Instead I am simply posting the questions as reference for consideration and study.They questions were:1. Does the company have products or services with sufficient marketpotential to make possible a sizable increase in sales for at least several years?2. Does the management have a determination to continue to develop products or processes that will further increase total sales potentialswhen the growth potentials of currently attractive product lines havelargely been exploited?3. How effective are the company?s research and dev... More About: Investing , Cons , Select , Sele
The Price/Earnings Ratio (PE Ratio)
2007-06-09 19:11:00 The Price /Earning s Ratio (PE Ratio)The Price/Earnings Ratio (PE Ratio) also know as the ?earnings multiple? is probably the ratio most often used in discussing stocks. PE is the ratio of stock price divided by earnings per share. You will learn more about PE ratios as you go deeper in to investing and investing math. At the very minimum, it beneficial to at least have an understanding of what the PE ratio is and how it is calculated:Price Share / Earnings Per Share = PE Ratio If a stock price is $28.75, and the company?s EPS for the last four quarters is $1.25, you calculate the PE ratio as follows:PE ratio = $28.75/ $1.25 = 23 More About: Business , Terminology
Current Ratio
2007-05-29 01:34:00 The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its debts over the next 12 months (short term debts). The Current Ratio is one example of several ratios used to evaluate a company?s financial strength. The Current Ratio a company?s current assets divided by its current liabilities. If the current ratio is too low, the company may not be able to pay short term creditors, whereas a very high current ratio might mean that the company has too much money in accounts receivable and/or inventories.To calculate a ratio, you simply divide one number by another. The formula for Current Ratio is:Current ratio = Current assets / Current liabilitiesExample: if a company?s current assets are $25 million and current liabilities are $15.45 million, the calculation for current ratio is:Current ratio = $25,000,000/$15,450,000 = 1.6181 More About: Business , Terminology , Rent
Gross & Net Profit Margins, Definitions and Calculations
2007-05-20 02:20:00 Gross profit margin is a financial ratio used to assess the profitability and efficiency of a firm's core activities, excluding fixed costs. A business that obtains a higher gross profit margin than its competitors within he same industry is more efficient.In simpler terms, Gross Profit sometimes called Sales Profit or Gross Operating Profit is the difference between revenue and the cost of making a product or providing a service, before deducting overheads, payroll, taxation, and interest payments.Net profit is another accounting term commonly used in business and investing. It is equal to the gross profit minus overheads minus interest payable plus one off items for a given time period. Net Profit is commonly referred to as "the bottom line?. Generally speaking, this term is synonymous with Pre-tax Profit.To calculate your gross and/or net profit percentages is quite easy and often forgotten or overlooked by investors and small cottage industry business owners. Knowing your prof... More About: Business , Definitions , Gross , Ross
Ain't it the truth?
2007-05-06 01:21:00 5 million of our older Americans have not signed up yet for their Medicare, Part D, drug plan------ Many are old and confused. We are NOT going to grant them an extension.However, 12 million illegal aliens are in our country and we are going to allow them to stay, protest, procreate, receive support monies, attend schools, avoid paying income taxes, have our teachers take 300 hours of ESL(English as a Second Language) training at our expense, and who knowqs what else.We must really dislike our old people... (Ain't it the truth?)If it ticks you off, pass it on in an email.BTW:Don't forget to pay your taxes...... 12 million illegal aliens are depending on you.Be sure to invest all the money you can - at this rate, Social Security & Medicare may be long dead before you retire. More About: Truth , Ruth , The Truth
The Assault on the Middle Class
2007-04-27 03:24:00 It?s always the working and or the middle class that has to obey the laws and jump through the hoops. We pay taxes, they get loopholes. We get fired for sleeping on the job, they all it a ?power nap?. We get laid off, they get bonuses for doing it. We take drug tests they don?t. Ever heard of a chairman of the board taking a urine test?I recently got a letter in my email that further illustrates the assault on the middle class. Read it and see what you think:Like a lot of folks in this state, I have a job. I work and they pay me. I pay my taxes and the government distributes my taxes as they see fit. In order to get that paycheck I am required to pass a random urine test, which I have no problem with.What I do have a problem with is the distribution of my taxes to people who don't have to pass a urine test. Shouldn't one have to pass a urine test to get a welfare check, because I have to pass one to earn it for them? Please understand I have no problem with helping people get back... More About: Assault , Trends , Middle , Class , Middle Class
Clouds on the Dow
2007-04-20 21:32:00 Today is April 20, 2007. The Dow is trading near an all-time high. At the moment this afternoon, it is at 12,936.14. Sounds good right? Well let?s look at the charts. If you just entered the market in 2003 it is fantastic! But if you have been buying and holding since the year 2000, you have gained very little since then. Not only that, but the purchasing power of the dollar has declined dramatically. Just 2 days ago Rueters.uk reported the dollar at a 26 year low. Seems the only people making out on this market are American short-term traders that have been calling the market shots right. On the other hand, the average US buy & hold investor, and most foreign investors are getting burnt.Between January 3, 2006 and April 18, 2007, The Dow rose 18%. At first glance, that is a decent gain for a trader living in U.S., but his gain was offset by a pretty big decline in the dollar. During that same time, the pound gained about 15% against the dollar. British investors & managers pulled o... More About: Trends , Markets , Clouds , Loud , Cloud
A Look Back in Time
2007-04-19 01:27:00 THE YEAR 1907 o The average life expectancy in the U.S. was 47 years old. o Only 14 percent of the homes in the U.S. had a bathtub. o Only 8 percent of the homes had a telephone. o A three-minute call from Denver to New York City cost eleven dollars. o There were only 8,000 cars in the U.S, and only 144 miles of paved roads. o The maximum speed limit in most cities was 10 mph. o Alabama, Mississippi, Iowa, and Tennessee were each more heavily populated than California. o With a mere 1.4 million people, California was only the 21st most populous state in the Union . o The tallest structure in the world was the Eiffel Tower o The average wage in the U.S. was 22 Cents per hour. o The average U.S. worker made between $200 and $400 per year. o A competent accountant could expect to earn $2000 per year o A dentist made $2,500 per year o A veterinarian between $1,500 pe... More About: History , Trends , Inflation , Time , Back
Using a Stock Checklist
More articles from this author:2007-04-15 23:43:00 One of the first mistakes and amateur investor makes is to "buy the market" or "buy the sector". An example would be ?healthcare is going up?. Next the investor picks a stock from a publication, and with little research or analysis, invests his money. Certainly some have gotten lucky at this approach, but those are the exceptions and not rule. One of the simplest tools for a beginner is a stock checklist. A stock checklist is often just the first very basic step in choosing a stock, but it is the absolute minimum you should do before making any selection with your hard earned money. Step 1. Determine your goal (Classic textbook example: 100% appreciation in 5 years). Keep in mind the more aggressive your goal is, the more risk may be involved. Step 2. Go online, visit your broker, or go to the library. Find either the Standard & Poors or the Value Line Publications, usually in the business section of the library. Both publications are services for investors and brokers.... More About: Investing , Stock , Sing 1, 2 |
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