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Fri, 28 Oct 2011 00:00:00 -0400Many people are interested in investing in the stock market but do not know all the complexities surrounding it. This guide provides an overview of how it works and what the investor is buying into. If you are considering investing into the stock market, this guide will inform you of how the stock market works and why shares are available in the first place.
Thu, 08 Sep 2011 00:00:00 -0400Mitchell think it's very reasonable to say that the stock market is fairly valued at this time. A lot of news, risks and revised expectations are now priced into the market and share prices reflect all the current information. There's good value in many stocks at this time, but the question is: how long will they remain good values? Another month or perhaps another year? Nobody knows the answer. In this uncertain environment, there is a specific group that respresents the best stocks right now.
Fri, 02 Sep 2011 00:00:00 -0400If you happen to be looking for the best dividend stocks around, then there are thousands of companies operating in diverse sectors listed on stock exchanges. Any person with even a little sense will understand that all these companies are definitely not worth investing in. One needs to understand the business model of the company,forecast its growth and sales, check out its dividend paying history and look at its debt position and profitability before investing in its stock.
Fri, 02 Sep 2011 00:00:00 -0400Investment is a concept of restoring the money via purchasing of assets, lending loans and fund terms with well planned expectation on favorable future returns. We can find plenty of investment plans that can support in the money handling process that secures future in making profit. There are different options available for a quick investment like cash investment, debt securities, Stocks trading, mutual funds, derivatives, commodities, and real estate.
Thu, 01 Sep 2011 00:00:00 -0400So here we are: the last trading day of the month for stocks. And what has August brought us except a lot of pain during those 400- and 500-point single-day sell-offs on the Dow Jones Industrial Average? Depending on how stocks close today, stocks are ending this August at about the same place they started 2011. We are doing a lot better this year than we did in 2010. Last year, stocks were down five percent in the first eight trading months of the year-but stocks ended 2010 10 per cent higher than they started.
Fri, 26 Aug 2011 00:00:00 -0400Perusing the stock market for opportunities, I'm discovering some very good values in the marketplace. Economic conditions aren't the rosiest, as you know, but there are a lot of quality businesses out there that just went on sale. Also useful, dividend yields have gone up with the market's recent correction. I believe in the attractiveness of dividends, even when dealing with smaller, higher-growth companies. There's nothing like a stream of quarterly income to make you feel better about your stock market holdings. What's old is new again and dividends are back in style.
Fri, 26 Aug 2011 00:00:00 -0400One of the most common questions I hear these days: "Is the U.S. headed in the same direction of the Japan economy of 1990s?" The big fear is that we are headed to 10 years of deflation, as Japan experienced in its "lost decade." Yes, there many similarities between the Japan of the 1990s and the U.S. of the 2000s. Japan's real estate market and stock market both peaked in euphoria and collapsed, just like they've done here.
Fri, 26 Aug 2011 00:00:00 -0400It's time to rejoice; stocks have gained for two straight days! Of course, I'm kidding. The bounce has largely been due to technically oversold buying as traders try to determine whether gains are sustainable or if it is a "dead cat bounce" in a developing bear market. My thoughts are that the upside moves in the stock market will be met with increased selling resistance and, unless there is a major catalyst and less risk, the upside gains will be limited.
Wed, 24 Aug 2011 00:00:00 -0400On August 15, Google Inc. (NASDAQ/GOOG) announced that it was acquiring Motorola Mobility Holdings, Inc. (NYSE/MMI) in a $12.5-billion, or $40.00-per-share deal, representing a huge 60 percent price premium to the previous close. The key to the deal was the enormous resource of patents held by Motorola, which is attractive to Google as the company tries to build up its "Android" mobile operating system. Motorola held over 17,000 granted patents and about 7,500 pending patents.
Mon, 22 Aug 2011 00:00:00 -0400One of the best things you can do as a serious equity investor is to review big stock market winners, even if you didn't own them. It's the same thing that professional athletes do. A golfer will review past golf tournaments. A race car driver will watch old races. The goal of the process is to improve your own game by seeing what has worked the best in the past. In the case of stocks, reviewing past winners helps an investor to hone his or her stock picking skills by helping him/her become familiar with what a big winner looks like and discover how it all came to be. It takes time and it takes effort, but then again, money doesn't grow on trees.
Sat, 20 Aug 2011 00:00:00 -0400Stocks plummeted over three percent at the open on Thursday, as the selling capitulation held despite several up days due largely to the oversold technical condition. My investment guidance is to stay on the sidelines and wait for a base to form before entering into new positions. High frequency trading, specifically on the short side, could make the selling worse, as we have seen in the past. The stock market is dangerous.
Sat, 20 Aug 2011 00:00:00 -0400Who's the smartest dictactor of them all and why is he seizing all the gold? Michael explains. You've got to love this guy, Hugo Chavez. The President of Venezuela had already nationalized the banks and the oil industry. Now he's going after the gold. Chavez took to state television yesterday to tell his people that the gold industry is 'run by the mafia', so 'We're going to nationalize gold. We can't keep allowing them to take it away.'
Fri, 19 Aug 2011 00:00:00 -0400Thank goodness for the spot price of gold. This is the one sector of the stock market (and global economy) that's flourishing within all the turmoil. Not only are the fundamentals for gold very strong, but they are actually improving, as price inflation is going up in the world's biggest economies. For risk-capital traders, the best action remains with gold stocks. It's a wonderful time to be in the gold equity speculation business and precious metals in general. What follows is a great example of the kind of positive trades that are out there (please note that this is an example only; not a stock recommendation).
Fri, 19 Aug 2011 00:00:00 -0400Mutual funds have emerged as a simple yet effective medium of creating wealth across the world. In India, however, investors have had mixed experiences. The issues like mismatch between reality and expectations in terms of returns, lack of understanding about various products and their suitability as well as wrong positioning of various mutual fund products have time and again created perception issues about this wonderful investment vehicle.
Thu, 18 Aug 2011 00:00:00 -0400For the year, the DJIA is down about 2.5 per cent, while the S&P 500 Index is down around six percent and the NASDAQ is down about 5.5 per cent. With dividends, the DJIA is about breakeven, which is an accomplishment these days. It seems pretty obvious why the top stocks have been large-cap, dividend-paying securities with major international operations.
Thu, 18 Aug 2011 00:00:00 -0400Last night, two of the biggest retailers in the U.S. increased their estimates of how much money they would make this year. Wal-Mart Stores, Inc. (NYSE/WMT), the world's largest retailer, has reported that revenue at stores open at least one-year has increased by 4.3 per cent. Interestingly, Wal-Mart's CEO Charles Holley was quoted as saying that customer surveys show that Wal-Mart's customers are now more concerned with employment than fuel and food costs.
Tue, 16 Aug 2011 00:00:00 -0400The bond market dwarfs the size of the stock market. I know what some of my readers are thinking right now, "If I don't invest in U.S. Treasuries, it doesn't matter to me if they go up or down." This is wrong. The price direction of U.S. Treasuries is based on interest rate expectations. If bonds are rising or decreasing in price, it means that future interest rates will either rise or fall. The entire economy is based on interest rates. Higher interest rates would be catastrophic for the stock market, real estate market, consumers, and businesses.
Tue, 16 Aug 2011 00:00:00 -0400I must admit the fact that consumers continue to spend despite any strong or sustained job growth and continued weakness in housing is encouraging. With consumer spending accounting for two-thirds of GDP, retail sales will eventually be stronger when the jobs and housing areas improve, albeit it will likely take over a year. The headline Retail Sales reading for July increased 0.52 per cent, in line with the consensus estimate, but above the upwardly revised 0.3 per cent in June. It was the biggest increase since March and clearly offers some optimism that the economy may avoid another recession.
Tue, 16 Aug 2011 00:00:00 -0400Investors really want to be buyers of stock at this time, but there isn't much of a catalyst to do so. Institutional investors are buying, but they're also playing on the market's volatility, accentuating the results. Reality is beginning to set in now and there's a realization that corporate earnings are actually going to be strong in the bottom half of the year. The employment situation isn't great and neither is the real estate market, but the corporate economy is well-positioned to deliver solid earnings growth and this makes the current stock market look very reasonably priced.
Thu, 11 Aug 2011 00:00:00 -0400The stock market is being very clear about how it feels about the current state of things - it isn't very happy at all. The sovereign debt issue continues to be a thorn in the side of global investor confidence and, to be very frank, it could be the catalyst for a severe correction in stocks and currencies. Nobody can predict the future and it's unclear as to how things will unfold in Europe; but investment risk for domestic investors remains very high at this time. Mitchell discusses some strategies to protect your investment portfolio.
Wed, 10 Aug 2011 00:00:00 -0400The fear now is the occurrence of another recession in the U.S. and globally. Could the downgrades be enough to trigger another sell-off and financial collapse? This is not a market for the risk-adverse. Watching the key stock indices plummet over 10 per cent in less than a week is scary and nerve-wracking. But the world is not ending. That I can say. My best investment advice at this time is to remain calm, but at the same time monitor your positions carefully. Use put options to hedge the downside risk.
Wed, 10 Aug 2011 00:00:00 -0400The economy might be lackluster and there is a risk of another recession, but the stock market is fairly priced and the outlook for corporate earnings continues to be solid. The gyrations of the stock market are based on fear-fear of a future without growth. Small-cap companies are going to have a more difficult time generating earnings growth over the coming quarters because their operations are more closely tied to the domestic economy. Large-cap companies, such as those in the Dow Jones Industrial Average and many within the S&P 500 Index, are going to keep growing their earnings because of their international operations and a weaker dollar that translates into a better bottom line.
Wed, 10 Aug 2011 00:00:00 -0400I know this might sound a bit off the wall, but it's my opinion... The recent correction in the market has little to do with Standard and Poor's downgrading of the U.S. credit rating. After all, if we look at it, after the downgrade, U.S. Treasury bills rallied-more investors flocked to them instead of away from them!
Sat, 06 Aug 2011 00:00:00 -0400It's surprising that the stock market reacted so strongly to news of weaker gross domestic product (GDP) growth and consumer spending numbers. It seemed fairly obvious that this was going to happen and the recent trading action in stocks suggests that institutional traders were just waiting for a catalyst to sell. They know that corporate earnings are decent, but with the S&P 500 Index right at the point of breaking its 50- and 200-day moving averages, the selling was pronounced. So, with the main large-cap index having crossed these two important moving averages for the second time in two years, the stock market could actually go either way.
Thu, 04 Aug 2011 00:00:00 -0400The term 'trading' provides an indication of what we are talking about. In general terms, when someone is 'trading' in motor cars we understand that they buys cars, which they hope to sell at a profit later. The same is true of the stock market; a stock market trader is someone who buys shares in the hope of selling them later at a profit.