Complacency
During the month of January the Dow Jones Industrial Average, usually referred to as the DOW, had an almost 1,000 point range, most of it down and the average investor has yawned and said ‘so what, this has happened many times before’.
What To Buy NowI am sure that if you have a brokerage account with a “full service” broker you have been getting calls about what to buy and sell. If you have big losses in certain stocks you might be hit with that great Wall Street lie to buy more so you can ‘Dollar Cost Average’. It doesn’t work.
It’s SnowingThe Winter Games for the Olympics are coming up soon and many will want to go to see the giant slalom event. That’s the one where the skier starts off from the little hut at the top of a long slope, picks up speed and makes his way around poles on the way down. Each turn about a pole is precarious and some fall on the way down and are wiped out.
Stock AnalysisI receive emails from Morningstar. This company provides statistics and analysis of just about every publicly traded stock company you can think of as well as voluminous information on mutual funds around the world.
InertiaOne of the basic laws of physics is that a body in motion will remain in motion unless disturbed by another force. What has this to do with the stock market?
ValuationEvery day I hear from the “experts” on CNBC-TV and the radio gurus that the way to buy stocks is find value. One man’s Rembrandt is another man’s connect-the-dots and fill in the spaces. Valuation is like beauty. It is in the mind of the beholder.
My Stock – Right or WrongWe all know the expression, “My country, right or wrong”, but have you ever thought about the stocks or mutual fund you own and said to yourself, “My stock – right or wrong” and held on to your position even as you saw your hard-earned money disappearing?
Low TideWhen you stand on the ocean shore and watch the waves breaking you might become aware that the tide is coming in or going out. It is a slow process to watch the water retreat and when it finally gets to its lowest point it is almost impossible to tell if it has stopped or will retreat further. Plenty of wave action, but going nowhere.
Trapeze Artist – Swinging with the Stock MarketWhen 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. The result is death or serious injury when they hit the ground
A Penny for Your StocksAccording to Investopedia Inc. the penny stock market has seen phenomenal growth this past decade. From ’94 to ’03, the Over-the-Counter Bulletin Board trading volume increased an astounding 8900%, equaling a total of 63% of the NASDAQ and 78& of the NYSE share volumes. Many an investor has succumbed to their siren song.
