One of the basic laws of physics is that a body in motion will remain in motion unless disturbed by another force. What has this to do with the stock market?
For the last 2 years the long-term trend of the market has been down with a few momentary deviations. When a baseball player hits a ball it comes off his bat at full speed and as it makes its arc through the air it slows down and is buffeted by the wind. Sometimes he hits a weak shot and once in a while he gets a home run. You can almost tell when it leaves the bat whether it will be a good one.
On March 1 and March 4 the market came to the plate and it went up so fast and with so much energy it looks like we have a home run in the making. It has been my experience not to argue with an accomplished athlete. The athletes we are dealing with here are the professional traders such as hedge fund and mutual fund managers. They have come forward and put their money where their mouth is. It looks like the ball is going to go a long way.
You as the small investor will want get on board while the ball is in the upward trajectory. Picking individual stocks is extremely difficult as I discussed in last week's column, but it can be done if you want to do the work. There is an easier way.
No-load mutual funds are the answer. Good ones (that means those that have been going up steadily for the past 6 months) are relatively easy to find, Do NOT buy any fund with a commission charge. If you do you will be starting in a hole and must crawl out before you have a chance to make money. Brokers will tell you that the load funds are better. They are lying.
There are several places to look. At the library you should see the Investor's Business Daily newspaper. In the Mutual Fund section you will find the top 25 funds for the past 6 months. This is not published every day so you will have to look in several issues to find it. You can make a list of the first 15 and in the same newspaper is the listing of all mutual funds you will see their toll free number. Call each one to be sure it has no commission charge or redemption fee. You can select from this group for your investments.
If you don't have a computer at home use the one at the library and go to www.smartmoney.com. Under mutual funds they will show you a list of the best performing funds for the past year. They also show if they have a commission charge. From this list you will be able to buy some very good no-load funds.
Which ones you buy are not that important as long as they are going up. Never keep any fund that is not on one these lists. When they stop going up it is time to sell them.
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
Culver prom limo ..Well, not really. What I mean is I don't mind... Read More
THERE'S SOMETHING TO BE SAID FOR standing firm in the... Read More
Wall Street has been preaching for years and years to... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
Hello Inflation, it has been awhile, I see you on... Read More
Maximizing a stock market investmentThere are several factors an investor... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
If you've ever flipped on the television to CNN Financial... Read More
One of the great "secrets" of successful people is discipline... Read More
For the year 2000 we have seen hundreds of mutual... Read More
∙ Make every investment in the stock market a long-term... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
Are you attracted to the idea of being in control... Read More
It takes a total mental commitment to the task. It... Read More
One of the things people are always asking me is... Read More
Mutual funds were moderately successful in creating a presence in... Read More
We are already in it, but you can't see it.... Read More
There has been great condemnation recently because China has been... Read More
With over 6,000 mutual funds available, it may be tempting... Read More
Ever wondered what is a mutual fund? A mutual fund... Read More
It is commonly reported that the stock market averages about... Read More
There is so much involved in developing peak performance, that... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
As I have said many times before in this column... Read More
The World Bank claims that some two billion of the... Read More
Wood Dale limo ..A 'stock option' is a contract between two parties giving... Read More
Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
Many people would like to diversify their portfolios to expand... Read More
How do you invest? What do you really pay? At... Read More
There are many good penny stock investments available, which could... Read More
If you have not back tested your trading system, you... Read More
Four blind men were asked to give a description of... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
One of the basic laws of physics is that a... Read More
Invest in the stock market for the RIGHT reason, using... Read More
I read a comment by a forum member on another... Read More
One Saturday morning, while he was sitting at his computer... Read More
If it walks like a duck, quacks like a duck... Read More
Let's say you are interested in this one company. You... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
It takes a total mental commitment to the task. It... Read More
The date October 13, 2000 will forever be embedded in... Read More
Time to look back2004 is over, now we are in... Read More
During the day I watch CNBC-TV, the stock market channel.... Read More
As an investor you will want to check out any... Read More
Alfred Winslow Jones started hedge funds in 1949. He was... Read More
You probably have been told that options are risky. Even... Read More
If you don't know what a Roth IRA is then... Read More
There is so much involved in developing peak performance, that... Read More
Stocks & Mutual Fund |