Posts Tagged ‘buying stocks’

Is This the Market of a Lifetime?

Posted March 25, 2009 by Bernz

It’s difficult for even the best prognosticators to get a handle on the stock market these days. The massive recession-that-might-be-a-depression that has gripped much of the industrialized world has brutalized stock markets in the US and abroad. Pension funds, college funds and savings accounts have all been hard hit. Recently, CNBC’s Jim Cramer took a verbal beating from Jon Stewart about his inability to predict the crash.

lifetimestockThe Dow Jones Industrial Average has dropped to its lowest level in 12 years recently and continues to test that limit. But even with all of the warnings about the dangers of the market right now, some wise investors are in collection mode.

So, is there opportunity in the stock market right now or only grief and despair? Optimists point to the fact that all stocks are getting punished regardless of their fundamentals. That means that there are stocks that are currently undervalued lurking out there. The tricky part is finding the ones that will both weather the remainder of the recession and also do well when the markets turn around.

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Posted in Financial Education, Financial Goals, Index Funds, Investing Basics, Investing Strategies, Stock Market Investing, Stock Watch | 1 Comment »

Whatever Happened to Diversification?

Posted March 4, 2009 by Bernz

Every investor has heard the advice to diversify their portfolio holdings in order to reduce risk and increase income. It is the gospel of every television financial guru and appears in every brokerage newsletter.

diversification

But how many people actually know what it means and practice it on a regular basis? Diversification is nothing more than a variation of the old “don’t put your eggs in one basket” mantra that has served people well from the Great Depression until today. Spreading out your investments amongst different industries, securities types and company size protects you from an economic downturn in any one segment of the market.

While diversification makes logical sense, many small investors choose to ignore the safe route and try to make fast money in the markets. It’s easy to see why people choose this path. Every late night “you too can make a million next year with tax notes” charlatan encourages you to forget about boring bonds and blue chip stocks and get on the train to riches. After all, Joe from New Jersey made $120,000 last month by spending five minutes a day picking stocks. (more…)

Posted in Financial Education, Investing Strategies, Stock Market Investing | No Comments »


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