small home additions before after hainesville unique remodeling combining kitchen and dining room remodel bathroom construction second floor bedroom addition wheaton .. Chicago Drug testing

Stuff

I continually hear from economists, talking heads, other market letter writers, analysts and assorted "experts" that I need to know all kinds of "stuff" about the stocks and mutual funds I am going to buy and I should keep up with them on a regular basis.

What is this important "stuff"?

Let's see. Oh, I know. Price to Earning ratio, P/E. That's always a big one on almost everyone's list. Simply put it is how many years it will take a company's earning to pay back the price today. It can be from five to infinity if it is not earning anything. Today there are many companies that have P/Es in excess of 50. That's 50 years to earn back your investment. Kinda steep, don't you think? For years the average has been 14 or 15. Today it is about 28 to 30 depending on who is counting.

A stock selling at 14 P/E is fairly valued by "experts", but if the stock is going down is that still a "fair" value? Do you want to buy something that is a fair value, but looks like it will sell for less in a few months?

Then there are all kinds of things market analysts like to look for and talk about such a gross sales, net profit, management experience, competition, industry sector, price/volume relationship, interest rates, rate of inflation and I could go on for a couple of pages, but you get the idea. When, and if, you do this type of analysis you will find most of the numbers don't agree with each other to give you a clear idea of whether to buy or sell. It is like trying to pick a button out of a washing machine during wash cycle. The more you look the more confused you become.

Brokerage companies want you to try to use all this "stuff". They encourage you to become confused. That way if you pick a stock that goes down they don't take any blame. "The market is very complex" is their favorite phrase. Whether you win or lose they make money in commissions.

If this "stuff" is of no value in stock selection (and it isn't) then how are you to find stocks that go up? It is so simple that brokers don't want you to know. In fact, most of them don't know. Here is the answer. Find a stock or better yet a mutual fund that is going up. Is that too easy?

There is a basic law of physics that says a body in motion will remain in motion in the same direction until disturbed by another force. The Law of Inertia. This same principle can be applied to the stock market.

Find a stock or mutual fund that is going up and buy it. When the direction changes to down (or even sideways) sell.

You don't need all that "stuff".

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:

Adding Funds

Someday you may want to retire and continue to live... Read More

Advantages and Disadvantages of Mutual Funds

Outlined below are some of the advantages and disadvantages of... Read More

Economists #2

Economists know more about how the fragments of society work... Read More

Is Your Garage Full Of Junk?

I have a 2-car garage. There are nice shelves on... Read More

Financial Crime

Congress recently passed another new law that is supposed to... Read More

Wal-Mart: Discount Store, Discounted Stock?

As GuruFocus updates the stock buys and sells of gurus,... Read More

Mutual Fund Expense Lies

When purchasing mutual funds we are cautioned to read the... Read More

Eternal Sunshine

There is a current movie entitled "Eternal Sunshine of the... Read More

Choosing An Investment Stock Broker

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

Which Way The Market

I am hearing predictions by brokers, financial planners, talk show... Read More

So, What is This Stock Market Thing Anyway?

We've all heard of the stock market and probably have... Read More

Trade Stocks for Real

I read a comment by a forum member on another... Read More

A Good Fund Manager

Every Wall Street analyst, financial planner and broker will tell... Read More

Economists

In today's volatile and confusing stock markets everyone is searching... Read More

Dont Ask Your Broker

Unfortunately, most of you who are reading my column are... Read More

Downdraft

For the year 2000 we have seen hundreds of mutual... Read More

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash... Read More

10 Tips For Creating Wealth From the Stock Market

1. Do not spread your money too thin.My friend has... Read More

Good Stock Market Tip; Good Return!

Forget making a profit; instead focus on the income provided... Read More

Trading Systems

To become a successful trader you must have some kind... Read More

A Stock Market Investment Strategy

I feel that an investment strategy in the stock market... Read More

Frog In The Pot

You remember the story about the frog that was put... Read More

What To Buy?

Now that you have some money burning a hole in... Read More

The Holy Grail (of Investment)

Every year I go to the Money Show in Orlando,... Read More

Understanding a Stocks PEG Ratio

A PEG ratio cannot be used alone but is a... Read More

inductionstreet lighting manufacturers indoor induction lights Pete's produce ..
inductionstreet lighting manufacturers indoor induction lights Pete's produce ..