Prior to this recession, investors could easily make a decent profit through a buy and hold strategy. However, in the past two years, volatility has been unlike anything seen before and a buy and hold strategy does not work. One must adopt a new, more active, rather than passive, strategy. Read the rest at http://fiscalfrenzy.com/
Great article from Fortune Magazine by Carol Loomis.
Is it time to buy U.S. stocks?
According to both this 85-year chart and famed investor Warren Buffett, it just might be. The point of the chart is that there should be a rational relationship between the total market value of U.S. stocks and the output of the U.S. economy - its GNP.
One of the biggest challenges facing the American economy is that we lack a domestic manufacturing base. Simply put we do not produce anything anymore. We buy tons of foreign goods and then wonder why we are lacking jobs. We import most of our goods which has resulted in a huge trade deficit and industrial job losses.
Words from the (investment) wise for the week that was (February 2 – 8, 2009)
Global stock markets shrugged off dire news on the US employment front, arguing that the gloomy data would hasten US lawmakers’ passage of a stimulus package. After falling for four straight weeks and recording the worst performance of the major US indices for January on record, Wall Street reversed course, on a stimulus and a prayer.
Enjoy the read.
Market Technical Analysis - Rally Continues - 02/06/2009
Nine Companies Bucking The Trend And Raising Dividends
What if you don’t want to spend your retirement managing and worrying about your portfolio? Put it on Auto Pilot, specifically on a Dividend Investing Auto Pilot. Dividends from a quality, well-diversified portfolio are much more predictable than capital gains and best of all, they are passive.
Market Technical Analysis Video - Mega Rally Goldman Leading
A 30% allocation to the VIX and 70% allocation to the SPY would have only suffered a maximum 14% peak to trough drawdown and grown a $100k account into $1,261,750 which is a 17% annual growth rate. As a comparison a $100k account invested entirely into SPY would have suffered a max 48% drawdown and would only be worth $250 k which is a 5.89% annual growth rate.
From The Mind Of A Pro Trader - Convince Yourself Not To Buy It
Live Market Technical Analysis - Pop and Fade - 02/04/2009
Misconceptions About Companies that Raise Their Dividends
In the birth of a child there is life, hope, unlimited potential, and yes, eventually death. Though we don’t like to focus on it, death is just as natural as birth. In much the same way, it is natural for a percentage of dividend stocks to fail each year by not raising their dividend or otherwise.
The best opportunity often lies in ripping from clutched hands the shares of your fellow traders. For some reason the 1981 Greek mythology inspired fantasy movie, Clash of the Titans, comes to mind where 'Grim Reaper-esque, character, Charon, opens his skeletal hand to accept a gold coin in exchange for a boat ride.