best siding vinyl siding installation siding installation glencoe install vinyl siding vinyl siding cost .. Chicago Drug testing

401K-itis

Are you one of those many people who dread reading their 401K statements? You have been watching it decline for about 2 years and are wondering if will ever stop. Just about everyone says the market will come back. Brokers say you are in for the long haul so don't worry. Any account that drops to a 50% loss has to go up 100% to get "even" and that is a very difficult phenomenon. If you have an 80% loss as has already occurred in the Nasdaq you would need a 400% rally to get "even". At 90% you have to see a 900% rise to that mythical "even".

Buy and Hold has been preached so long and so loudly that everyone believes it. As Adolph Hitler said when you tell a lie tell a big one. Wall Street has been screaming this one down the throats of investors for so long it has become conventional wisdom. Look at your 401K today and compare it to 2 years ago and tell me you believe in Buy and Hold. Common sense will not allow it.

Every broker has been taught that market timing doesn't work. Yes, they teach them that and they have been good students. The problem is they have had a bad teacher. Within the funds you now own the fund managers buy and SELL many times during the year because there is a time to sell. Selling is the key to successful stock market investing.

A friend mine came to me with his wife's 401K from United Airlines. It is composed of 8 Fidelity mutual funds. The employee can pick any one or more. Since the first of the year six of the eight are down from 3% to 27% (average 10.77%) and the other two were up an average of 3%. The two that are up are fixed income funds otherwise known as bond funds. If you have a 401K, IRA or SEP or almost any mutual funds the only place to preserve your capital during this secular bear market is in a bond fund - a no-load bond fund. Do NOT pay commission for these. And there are many of them.

For years Wall Street has condemned those of us who use market timing. Well, you can call me what you want, but I will have my money when the Buy and Holders are broke.

Stock mutual funds do not work in a long-term bear market. Mutual funds, as we have known them for the past 20 years, are dead. You now have only two choices within your retirement account for your money - a bond fund or a plain money market account. Don't cry that you will only make 5% on your money. Think about the 20% to 40% you will not lose. According to Lipper 99% of U.S. equity funds lost money in the second quarter. I have been telling investors for years - cash is a position.

Enronitis broke thousands of people because they would not (could not) sell as the stock broke down. Don't let 401K-itis break you.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know.

Copyright 2005

In The News:

Why the Majority Fail at Stock Investing

The gleam and bright lights of Wall Street lure in... Read More

The Shadow

The Shadow knows. There used to be a radio program... Read More

The Bottom?

Every day I hear someone on CNBC proclaim that "this... Read More

Lifestyle Funds Provide Greater Security?

With the stock market stubbornly refusing to settle down and... Read More

A Penny for Your Stocks

According to Investopedia Inc. the penny stock market has seen... Read More

Stock Investment Advice

Stock investment advice is easy to find. Do you get... Read More

The Surgeon General

The Surgeon General of the United States says that smoking... Read More

The Next Bull Market

We are already in it, but you can't see it.... Read More

Does Japan Matter?

For the last 12 years we have seen the Japanese... Read More

Alfred E. Newman

What! Me worry?Many of you remember the cover of MAD... Read More

Struggling Stocks, Booming Commodities

04/28/2005NASDAQ dropped -12.5% year to date in 2005. S&P500 index... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

Catnip of the Stock Market

I have watched my cat play with a bag of... Read More

Price to Earnings Ratio - P/E

After finding the price of a particular stock, usually the... Read More

Long-Term Investment In Todays Market?

The stock market is very unstable at this time going... Read More

Bargain Basement - Finding Stocks That Go Up

Have you been listening to the talking heads on CNBC-TV?... Read More

Choosing An Investment Stock Broker

If you want one.And I don't recommend any broker with... Read More

Investing in the Stock Market

From the book 'The Stockopoly Plan' by the author Charles... Read More

Investing in the Stock Market - When To!

Is really not as important as to how you invest... Read More

Money, Insanity and Wall Street

Money: the most charged word in the planet. It means... Read More

The Value of Stocks of a Company

The debate rages all over Eastern and Central Europe, in... Read More

Why Technical Indicators

The fight continues to rage among traders who use technical... Read More

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

Investment Discipline

One of the great "secrets" of successful people is discipline... Read More

Historical Briefing: Stocks, Finance and Money

The World Bank claims that some two billion of the... Read More

led parking lot led office lighting fixtures Pete's produce ..
led parking lot led office lighting fixtures Pete's produce ..