Sunday , 22 December 2024

Yearly Archives: 2011

10 Timeless Investment Rules to Survive This Stormy Stock Market

Rules may be meant to be broken, but with investing ignoring the rules can break you - especially now. Investment rules are tailor-made for tough times, allowing you to stick to a plan just when you need it most. Indeed, a rulebook is important in any market climate, but it tends to get tossed when stocks are soaring. That's why sage investors warn people not to confuse a bull market with brains. Here are 10 rules to survive this stormy stock market. Words: 769

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Don’t Be Misled! Here Are Five Common Myths About Silver (+3K Views)

Oftentimes perception, and not reality, rules the day with the thousands or millions of speculators placing short term bets with assets like silver. These perceptions are particularly strong given that paper players in the silver market often control the price in the short term (6-8 months), since there is so much more paper silver than physical metal out there...Here are five common myths about silver that I bet many speculators still believe are true. Words: 1638

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Don’t Invest in the Stock Market Without Heeding These "Rules of Trading"

I'm not going to candy coat it for you: making serious money in the stock market is a ton of hard work. It takes patience, savvy, and a certain level of market smarts - and the cold, hard truth is that if you don't have them, the big boys will drain your portfolio dry. Unfortunately, those are the three areas that most retail investors need to work on the most. Otherwise, they will simply end up in a cat-and-mouse game where they are the mice. Don't fool yourself for one second into believing that your "due diligence" can be done by watching a show or two on CNBC. It just doesn't work that way but if there is one voice from the markets that should grab your attention every time you hear it, it belongs to Dennis Gartman, founder and author of The Gartman Letter. He's sort of a guru's guru. [Here is] a glimpse into how he views and trades the markets. Words: 1061

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25 Videos Warning of Impending Economic & Financial Collapse & Chaos

The internet is awash (drowning?) in hundreds of doom and gloom videos providing dire warnings of coming world depression, food shortages, rioting in the streets, rampant (hyper) inflation, deepening banking crisis, economic apocalypse, financial Armageddon, the demise of America - well, you get the idea. Below is a small sample of such videos with a hyperlink to each. Sit back with your favorite beverage (or two/three!), turn up the volume (some of the music is foreboding) and look over the abyss into the pit of financial and economic despair that some see as about to erupt and engulf us in the months/years ahead. Take heed - you are being forewarned!

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Index Funds are a MUST in Every Long-Term Investment Portfolio – Here’s why

The average annual equity return for individual investors has been 60-65% less ( 6-7 percentage points less), over a twenty year period, than the performance of the indices that everyone assumes reflect investor returns! In spite of such a dramatic under-performance that fact is being ignored because it is not useful to academics or investment companies - but I would think it is of interest to YOU! Words: 729

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There Are 2 Ways Out of Global Economic Mess – Hope for One of Them & Prepare for the Other

It all comes down to this: We have to match growth to debt. If we can't create miracles from growth, we have to consider inflation to reduce the value of our debt. [Those are the] only two ways out of our current global economic mess - innovation and inflation. As the saying goes, we should hope for the best (more innovation) and prepare for the worst (higher inflation). [Let me explain why that is the case.] Words: 1195

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"Gold is Useless!" and 6 Other Reasons To Hate Gold As An Investment (+3K Views)

Over the past few years, pretty much every investor has become familiar with gold. The shiny precious metal has surged in price and has managed to hold strong while broad indexes have slipped, highlighting its appeal as a diversification agent and safe haven investment. This has prompted many investors to ramp up their allocations to the space in order to take advantage of these favorable trends and lead their portfolios to broad gains...[but] there are a number of other issues that investors need to be aware of when considering allocating capital to the space, as there are several reasons to avoid the precious metal from an investment perspective. Below, we highlight seven reasons for why investors may want to temper their expectations for the metal and consider a more diversified approach that doesn’t include such a large allocation to the ‘barbaric relic’. Words: 2030

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The Big Mac Index: Is Your Country's Currency Over or Under-Valued Compared to USD?

The Economist’s Big Mac index is a fun guide to whether currencies are at their “correct” level. It is based on the theory of pWords:urchasing-power parity (PPP), the notion that in the long run exchange rates should move towards the rate that would equalise the prices of a basket of goods and services around the world. [As such, take a look at the chart below to see just how expensive a Big Mac is in your country (raw and adjusted for GDP per person) and therefore, by inference, the extent to which your country's currency is over- or under-valued compared to the U.S. dollar.] Words: 421

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