Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund you can call your broker and he will send you reports on how the company is doing, what their management is like and what might be the projected earnings for the company and how the industry is doing. Great information.

You will apply yourself to this mound of papers to determine if you want to buy the equity. You might also send for more reports from independent analysts such as Morningstar. You will become buried in papers. That is what the brokerage company wants. The reason is very simple. If you buy the stock after doing all that research and it goes down instead of up they are not responsible for your stupidity. Of course, if it goes up they can take credit for providing all that great information.

Now let's think for a minute. You received all that information that was already printed so it could be sent to you. It makes me ask when was that printed? How old is the information? If I can get all this stuff about the company it means that anyone can. What it boils down to is the information is just that - information and none of it will tell you that the stock will go up further because the whole world knows.

These brochures are made to help you BUY not SELL. In my years of experience I call them a work of fiction. No brokerage company is going to issue a bad report about a company at least until it is ready for bankruptcy and by then your investment dollars have disappeared.

I know your next question. If I can't rely on those reports how am I going to buy anything? There is a better way. You will want to see the price action of the stock or mutual fund. All stocks undulate as they go up or down and you want to know the major trend.

On the Internet you can go to a web site www.bigcharts.com and type in the symbol of the stock or fund and request a weekly chart going back for about to 5 years. What you are interested in is what is it doing during the past 6 months to one year. If the trend is up it is a buy and if the trend is down or sideways don't buy it or if you own it sell. See how easy that is. Brokers and financial planners won't like it because it takes all the mystery out of buying stock and they don't want you to know this simple procedure.

Analyst reports give you lots of useless information, but will not tell if the stock will go up after you buy it. If it isn't going up don't buy it.

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.

---

Is the Stock Market for You?

Many people would like to diversify their portfolios to expand... Read More

Economists

In today's volatile and confusing stock markets everyone is searching... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor.... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

Why This Bear?

People are constantly asking me why is the stock market... Read More

Mr. Market

I constantly hear the talking heads on CNBC-TV, the radio... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

Buying Mutual Funds

It looks like the market is ready to start up... Read More

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

Hedge Fund Advertising

Have you seen all those big full page ads for... Read More

Buying New Issues

Has your broker been calling you recently with the "great... Read More

I Love To Lose Money

Well, not really. What I mean is I don't mind... Read More

The Stock Trading Plan - Why You Must Have One To Trade Successfully

This is the continuing story of our two imaginary traders,... Read More

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

Pathways

During our travel down life's path we come to many... Read More

How Much Information Do You Need?

You have decided to buy some stock or mutual funds,... Read More

Stocks: Understand What You Buy!

"There is nothing more frightful than ignorance in action!" Johann... Read More

Stock Insurance

You have a lock on your house. You have a... Read More

Lemmings Are Gathering

Before they go over the cliff to their destruction these... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

True Investment Road Maps

If you don't know where you are going any road... Read More

What To Buy Now

I am sure that if you have a brokerage account... Read More

Is The Bear In The Cage?

For the last few weeks we have seen the stock... Read More

Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

Duct Tape

Did you run out to buy that duct tape yet?... Read More

What Are You Waiting For?

Do you own any mutual funds? In an IRA or... Read More

Downdraft

For the year 2000 we have seen hundreds of mutual... Read More

Mutual Fund Honor Roll ? Buy High, Sell Low by Chasing Performance

Buy high and sell low -- It's not a typo.Millions... Read More

Stock Valuation using the SMP Model

Disclaimer: Please note that I do not necessarily purchase, own,... Read More

Emotional Trading

The single most expensive stock market trades are those made... Read More

Investment Capital Gains

Have you bought any mutual funds this year or late... Read More

Big Buildings Can Mean Big Economic Disaster

AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More

Stock Market Diversification

In one of my previous articles (Investing in the stock... Read More