Beating The Stock Market » investment ideas

Investments

joanne — Thu, 09 Sep 2010 12:22:43 +0000

I’ve been looking at the different industries and investment vehicles that are out there for the average investors. Depending on which types of investments out there, it may or may not be the time to invest. How can one know if an investment is right? Taking your time and doing the research to find out if it will be a profitable one or not. The housing market, the stock market or any other investment you have to choose from can be profitable, but unless you look at the real numbers and study everything there is to know about the investment prior to putting your money into it, you can lose most (if not all) of your capitol.

Yes housing prices are way down from their peak in 2006-2007, but that doesn’t mean that all housing prices are right for the picking. You need to look at the condition as well as the area the house is in. In some part of the country, housing prices may never reach the prices of just a few years ago.

What about the stock market? I don’t trust the stock market at this time since there is no reason for the Dow to be at where it is at the moment. Every month poor reports are being released (consumer confidence, unemployment and retail sales) and the stock market seem to either gains or holds it’s ground. We are in a terrible economic time and to think that the stock market will continue to hold is risky. If you’re looking to invest in the stock market, make sure you do your research into the company before you buy any shares.

In my opinion, gold is the answer right now. I don’t mean stocks that trade off of stocks, I’m referring to actual gold. Gold as always retained it’s value or has gone up during trouble times like these. So when you invest, invest wisely.

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Dividend Stocks

billy — Wed, 08 Sep 2010 14:17:20 +0000

The stock market has been a very bumpy ride for most investors, so much so that many of them are sitting on the sidelines. it’s a shame that they are doing so since there are other ways than making money than buying low and selling high. Dividend stocks are just another way to make money even when the stock market isn’t doing anything.

There are hundreds of companies that are traded on Wall Street that offer dividend payouts to their shareholders. What are dividends? Dividends are a way for a company to share the profit of the company with it’s shareholders. Many times a company has grown so much that they don’t need to put so much into research and development, so they will pass a portion of it to it’s shareholders on a quarterly basis (four times a year).
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in doing so, an investor can make money even if the company’s stock price doesn’t change. Let’s say you buy shares in company XYZ for $100 per share and the company offers a 10% dividend. Which means that the company will give it shareholders $10 a year for each share you own. So four times a year you will receive $2.50 every three months for each share. After one year of owning the shares, your actual price per share is $90. If the price hasn’t moved over the same period, you are still up 10% on your investment. How could you go wrong with that?

There are also many different ETF’s that are built around this concept, but why pay a fee for something you can do yourself. Typically you can also do better than the ETF’s since you are able to get in and out easier than the big boys.

Be aware though that Washington and the present Administration is looking to raise capitol gains taxes which will include dividend payouts. Of course if it’s your IRA retirement account, it won’t affect you. Look into it for yourself to see if dividend stocks are right for you.

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Stock Market Volatility

billy — Wed, 05 May 2010 02:29:16 +0000

Stock market volatility fluctuates all the time, some days more than others. Volatility in the markets grow as the gains increase along with those times when uncertainty rises.

Since the markets have risen as high as they did and the condition of the economy is still on shaky ground, I’m not surprised to see that the VIX (volatility index) jumped 20% in just one day. What does surprise me is the fact that it took so long for it to happen.

In the last fourteen months, the Dow Industrial Average (DJIA) has increased by nearly 80% and over 10% in the last three months. I’ve been saying for quite some time now about the fact that the DOW sitting at over 10,000 points has no real reason to be there. Of course many investors are still riding the wave as long as they can. Unfortunately many of them won’t see it coming when the markets take the next plunge.

Unemployment is at 12% (officially), but it is estimated to be at 17% since most people who were receiving unemployment benefits last year are no longer eligible. Many companies are holding off on hiring until they get a good look at the new tax laws that the present Administration has passed. Add on the fact that the foreclosures in the United States are not shrinking, instead they are holding steady in most areas.

The VIX is one of the indicators that should be watched on a regular basis as part of your stock market strategies. As the uncertainty in the markets rises, the VIX will climb. Many average investors lose money in the stock market as this happens because the price per share of most companies will rise and fall with large swings. If you are a veteran in trading stocks, most likely you’ve learned to read the VIX and play it accordingly.

For those who are not familiar with VIX, there are a few stock market books that will help you understand much better. In many of Jim Cramer books, you will find information about the volatility in the stock market and how to play it.

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Top Gold ETF To Buy

joanne — Mon, 26 Apr 2010 16:34:07 +0000

For those of you considering investing in gold as a preventative measure against paper currencies and the mismanagement of governments, the best loved and unarguable top gold ETF to buy is GLD – also called SPDR Gold Shares. The unique feature of this Gold ETF centers on its relationship literally matching the valuation of gold. Although one could reasonably assume this to be standard, where ETF’s, or Exchange Traded Funds are concerned, it is certainly not. Numerous ETF’s operate with futures contracts that are generally less predictable and so riskier investments. Although past performance is no guarantee of future results, gold ETF funds like GLD, prove to be a less risky option than alternative commodity investments, particularly for those that understand well what is happening with the economic picture.

There are those investors who feel confidant that deflation has already begun, and that would prove to be gold bearish. A few of them will indicate television advertising, claiming that after the public catches on to an investment, it is time to sell. Yet different investors believe that because of the government running the printing presses overtime to create more money, the value of gold will keep going up. Gold more or less proves to be protection against a declining dollar, and its performance is based on other country’s currencies and economies as much as it is on those of ours. Could our economy perform sufficiently for us to build up our currency’s value, or might we have to maintain a weaker dollar to be able to compete internationally? Perhaps more involved than before in history, this involves a complex series of actions and reactions.

Despite all of the background noise going on, a constant concept emerges. The majority of both gold bears and bulls concur with gold maintaining the upward trend over both the medium time frame, as well as internationally. A number of investors today feel certain that one day the specter of hyperinflation will rear its ugly head, causing GLD, and also UGL (ProShares Ultra Gold), to both be solid investment ideas for all long term minded investors.

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Stock Market Game

billy — Tue, 21 Jul 2009 00:33:57 +0000

I’ve said it many times, and I stand by it; Stock Trading Is Not A Game. It doesn’t matter if you’re a trader or an investor, you must do your homework by researching every stock you plan to invest in or trade But what if you could play a game and practice investing without risk? You could have fun “playing”, while learning and understanding the stock market even more.
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I stumbled upon a free website where you can trade stocks on a virtual Wall Street. UpDown.com is a free fantasy investing site. People join UpDown to practice investing and can earn money for winning contests. Start with a $1,000,000 cash reserve and start trading stocks immediately after registering and creating a profile. With up-to-date news information along with an active forum for members to share ideas and investment strategies.
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The UpDown is a community for people interested in investing in the stock market. If you’re new to the stock market or have a few year under your belt, this site will give you the chance to try different strategies without any actual loss of money.
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UpDown.com provides a platform where investors can view, share, and rate high-quality stock analysis and investment ideas. They then filter, aggregate, rank, and present the community’s investment recommendations for the benefit of all UpDown members looking for valuable investment advice.
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Click the banner below, or the one in our sidebar to join. I just joined myself and it looks like a good place for me to test out new strategies that I normally wouldn’t, with my own money.

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