| |
| |
|
Stocks & Mutual Funds Information |
|
|
|
Peer Groups
Whenever I see mutual fund comparisons in the trade publications and in the financial section of the newspaper they almost always mention a specific fund and tell you how good it is in relation to its peer group. A peer group is a specialized sector of mutual funds that all invest in about the same type of stocks or areas of the world or size of companies or some such categorization. Does this help you make money? No. Why? You have several dogs. A minature poodle, a regular poodle and a very large poodle. On the outside they look very similar, but in performance they can be very different. In a race with a greyhound they will all lose. In a tracking contest with a beagle they will not be able to find the possum. In a contest with a retriever they will not get the bird as quickly. However the large poodle is bigger stronger and can do more than its counterparts. So what? You have the wrong dog for the job. When you go hunting you don't want a poodle you want a pointer, setter or beagle depending upon the prey. When you invest your hard-earned money in a mutual fund you want the best performer for the type of hunt in which you are engaged and that hunt is for maximum appreciation of your investment. Your prey may change form (from a duck to a possum) and as the prey changes so should the animal (fund) you use (invest) also change. If you had stayed invested in the best technology fund you could find a year ago, the best one in the entire peer group, I can guarantee you have lost money. The sector has lost more than 75% of it value. It makes no difference if you have the best dog of that breed. If it can't do the job you must change dogs. (Pun intended.) The important thing to remember when choosing a mutual fund is to find one that is in a sector that is strong NOW, not a year or 3 years ago. When you go back for 3 years or 5 years you will find that there has been a period of time when that sector had or has a very big decline in value. When ANY fund starts down more than 10% to 20% (you decide) it is time to sell it for another fund that is still increasing in value. When we are in a bear market, as we are now, you may not be to locate one that is going up. Do not listen to any broker who says that a group cannot go any lower. You must wait until you see it increasing in value every week for at least 2 months or more before committing any funds. You only want to be invested in the best no-load fund in the strongest peer group at all times. Al Thomas' book, "If It Doesn't Go Up, Don't BuyIt!" has helped thousands of people make moneyand keep their profits with his simple 2-stepmethod. Read the first chapter athttp://www.mutualfundmagic.com and discover why he's the man that Wall Streetdoes not want you to know. Copyright 2005
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
|
|
|
RELATED ARTICLES
Price Targets Every day in any financial publication you will find the Wall Street mavens giving their predictions on many stocks. It was issued here and should go there. Dollar Cost Averaging Dollar cost averaging is one of the most popular ideas in the investment community. Everyone seems to like it and it has become a watchword among stock and mutual fund brokers. Stealth Bull If you have been watching the stock market at all you are probably very confused. You are not alone. Trend Trading - Trading Stocks Using Technical Analysis and Swing Trading Strategies Peter is a professional trader, Paul is not. Peter has a tested, proven, written trading plan that he follows each time he enters a trade, Paul does not. Bull or Bear? Cat or dog? Maybe Zebra. Shucks, I don't know, but my broker keeps telling me it is a bull and to buy this and that. Catnip of the Stock Market I have watched my cat play with a bag of catnip. At first he is having fun and slowly he becomes drunk with pleasure and then finally he becomes so tipsy he falls over to sleep it off. How Eating Bitumen Made Me a Better Trader Trading is a fascinating activity.There are so many layers to it. A Stock Market Investment Plan that Never Lets You Down The bulls and bears of the stock market are both tempting and scary to the investors. Speculators are enchanted by the stock market's potential to help them in making quick money with a big M. Commoditizing the world Let's discuss commodities; with the latest Enron situation, it is important to understand the way things work. A commodity is anything useful, especially a transportable agricultural product or mining product. The 1% Solution You probably know the story of Sherlock Holmes and the 7% solution. He had a drug addiction. The Elephant Four blind men were asked to give a description of an elephant. They had not seen one or ever encountered such a beast. How to Pay Less and Get More: Discount Broker vs Professional How do you invest? What do you really pay? At the end of the day, what are your real results? These are questions smart investors should be asking themselves (but usually don't). In this era of more fees, misc. Pension Plans If you have a pension plan at work you will want to read this and if you don't you will still want to because it affects your retirement account.There are two kinds of formal retirement plans that are set in place by employers. Structured Settlement; Lawyers in NY and Mutual Funds Minority Report the movie may not be far off if the Head of the SEC has anything to say about it. At a Senate Banking Committee hearing on CSPAN, William Donaldson said that the beloved SEC can no longer sit back and "mop-up" after scandals break. Some Good News for A Change Before we get into all the good news out there, let us first take a look at what the term "news" really means. By definition, the term "news" means the exception to the norm. Managing Investing and Stock Market Risks Reduce your investing and stock market risks by:Setting your sights on the long term, patiently riding with the ups and downs!If you have the time to be patient, you can benefit from time diversification. The more numerous good years for stocks outweigh the bad, pulling your return up. Price to Earnings Ratio - P/E After finding the price of a particular stock, usually the next number everyone looks at is the P/E ratio.P/E is the ratio of a company's share price to its per-share earnings. Size Counts! What the heck am I talking about?It is often said that to grow mentally, spiritually, emotionally and personally that you have to stretch and move out of your comfort zone. I definitely believe in this concept, however. How Much Information Do You Need? You have decided to buy some stock or mutual funds, but wonder which one to buy. You need more information so you call your broker for advice. Basics of Stock Market Financial markets provide their participants with the most favorable conditions for purchase/sale of financial instruments they have inside. Their major functions are: guaranteeing liquidity, forming assets prices within establishing proposition and demand and decreasing of operational expenses, incurred by the participants of the market.
|
Sponsors: Chicago Paving Contractor | Remanufactured VTL | Religious Statues | Search Engine Specialist
