Have you been listening to the talking heads on CNBC-TV? Or those talk radio stock experts? Getting all those good recommendations on what to buy now. Now?
Those guys keep telling me the market is oversold. It can't go any lower. (But it does.) I bet your broker has some hot tips for you too. Advice from a broker is a eulogy for your money. I don't think he has told you about the one position you should have in your account right now. It's a nasty four letter word to him - CASH. In a money market fund it will make you about 5%, maybe 6% and that is better than the bloodletting going on in the market.
There is an old saying - "When in doubt, get out". And right now everything is in doubt. The "experts" are confused as one says 'recession', another says 'hard landing', another 'soft landing', 'buy', and no one says 'sell'. That last word is a 'no-no' on Wall Street. Less than 3% of all brokerage recommendations are sells. They are afraid they will offend the company and won't be able to talk to the CEO any more. Hey, what about us customers out here? We are the ones who are paying the bills.
Garrett van Wagoner of the Van Wagoner family of funds said he follows 5,200 Nasdaq stocks and that more than 1,000 of them have lost 90% of their value and 200 have dropped over 99% in value. Yes, he says there are some great values out there, but he doesn't say which ones or when to buy. I'd like to ask him if he was smart enough to sell some of those puppies before they hit bottom.
The stock market mavens think they are market makers, but they are more like weather meteorologists who predict but cannot manipulate the weather. When the weatherman is wrong you get wet. When the stock experts are wrong you get soaked.
As I have said in past columns there is no hope that Nasdaq will go back to the 5000 level for many, many years. Ten years would be my closest guess. There are too many stocks being held by investors who are waiting for a rally up so they can get out "even". This kind of thinking keeps you poor. Your money is tied up in a stock that will never perform when it could be some place else making you a profit. There is always some dummy out there who will buy your garbage.
We are having a bargain basement sale now in the stock market. Most of it is something no one wants. Ever been to a garage sale? Can their junk be your treasure? There will be plenty of time to buy, but now is not the time to go shopping.
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.
Copyright 2005
Have you been listening to the talking heads on CNBC-TV?... Read More
How often have you come across an advertisement or e-mail... Read More
It looks like we have now entered a new bull... Read More
Day trading is all about making buy and sell decisions.... Read More
Fundamental analysis.Fundamentals analysis says the best way to predict the... Read More
If it walks like a duck, quacks like a duck... Read More
It seems that every day I turn on the TV... Read More
Right now there doesn't seem to be any "gold fever".... Read More
A PEG ratio cannot be used alone but is a... Read More
For the year 2000 we have seen hundreds of mutual... Read More
I go to the Money Show every year to visit... Read More
Where is the beef? Or maybe it should be where... Read More
I read a comment by a forum member on another... Read More
∙ Make every investment in the stock market a long-term... Read More
I would like to share with the reader an article... Read More
Every broker and financial planner will tell you that you... Read More
Stock trading remains a very competitive field and the stock... Read More
Mutual funds by definition are a mixed bag of stocks,... Read More
What can I expect to make my first year of... Read More
When it comes to stock market trading it PAYS to... Read More
All of the talking heads have been telling us that... Read More
Any online investor / trader seeks an excellent off or... Read More
I was recently interviewed for a press release through a... Read More
Quick, look out the window. It's raining. No, the sun's... Read More
The bear market that showed up at the end of... Read More
Cat or dog? Maybe Zebra. Shucks, I don't know, but... Read More
Are hedge funds a suitable investment for you? Hedge funds... Read More
Wall Street has been preaching the doctrine of Buy and... Read More
If you go to Haiti or other places in the... Read More
1. Do not spread your money too thin.My friend has... Read More
The stock market often closes a week in the middle... Read More
On Monday, November 25, 2000 Investor's Business Daily listed on... Read More
Success in small cap & micro cap stock trading like... Read More
You've decided to try your luck at trading stocks or... Read More
I feel that an investment strategy in the stock market... Read More
There can't be many traders who haven't at least considered... Read More
There are many important things you need to know to... Read More
One of the great "secrets" of successful people is discipline... Read More
After some forty years of banking and investments, I retired... Read More
There has been great condemnation recently because China has been... Read More
For years I have been saying you must have a... Read More
This is the continuing story of our two imaginary traders,... Read More
On the 40 year journey through the turmoil of a... Read More
You probably have been told that options are risky. Even... Read More
There is a famous cliff on the ocean in Acapulco... Read More
Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More
How many times have you said to yourself, "I'd like... Read More
If you are fed up with early redemption charges and... Read More
The debate rages all over Eastern and Central Europe, in... Read More
Because there are so many stocks that are NOT paying... Read More
Wall Street's watchword has always been diversification, but what does... Read More
During the month of January the Dow Jones Industrial Average,... Read More
Exchange Traded Funds (ETFs) are a group of passive index... Read More
If you haven't heard of the technical indicator with the... Read More
Money management starts with protecting your capital, realizing profits and... Read More
The broker told me not to sell because the mutual... Read More
The greatest stock market myth is the idea that investing... Read More
Disclaimer: Please note that I do not necessarily purchase, own,... Read More
Money: the most charged word in the planet. It means... Read More
Let's assume that you want to make some serious money... Read More
Even if you don't own any of their stock or... Read More
I love roller coasters. The steeper the better. High and... Read More
If you don't know where you are going any road... Read More
We learnt the following the hard way! If any of... Read More
Recently I watched my favorite football team lose a vital... Read More
Duck! No I don't mean a quack, quack. I meant... Read More
Stocks & Mutual Fund |