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

Chicago limo Skokie ..
In The News:

An artificial intelligence-powered home security system can fire paintballs and tear gas at trespassers. The camera identifies human faces and animals.
Technology expert Kim Komando gives her tips and tricks on enhancing your user experience a smartphone and other devices you use everyday.
A new camera called NUCA uses artificial intelligence to create deepfake photos of subjects by stripping away clothing in close to real time.
The Kimberley Kube trail-ready camper has a compact but spacious design and combines luxury, functionality and ruggedness for a weekend getaway.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Emails instructing you to reset your password for an account may be legitimate, or they may be scams. Kurt "CyberGuy" Knutsson explains.
Northrop Grumman's Manta Ray uncrewed underwater vehicle aims to revolutionize undersea missions — it glides through the ocean without human assistance.
Learn how to work Google's calendar application to streamline and organize your daily tasks from technology expert Kim Komando.
If you do not want Facebook to have automatic access to your private photos, follow our tips to protect yourself. Kurt “CyberGuy" Knutsson shows you how.
Kurt “CyberGuy" Knutsson goes into detail about Apple’s recent iOS update that allows iPhone users to instantly translate spoken language simply by using the Action Button.
Safeguarding your digital life with a reliable physical backup isn't just a precaution, it's a necessity. Kurt “CyberGuy" Knutsson provides the essential backup checklist.
Kurt “CyberGuy" Knutsson reveals how a Redditor exposed false recycling claims at their apartment, highlighting a report that only 21% of U.S. recyclables are processed.
Kurt "CyberGuy" Knutsson offers a travel toolkit featuring five technology tools to help you with booking flights and hotels for your summer vacation.
The bubble behind the clock on your iPhone can appear in different colors. Kurt "CyberGuy" Knutsson explains what each of those colors mean.
Scammers are using the power of artificial intelligence to mimic voices of people and are using the fake voices to commit crimes, like kidnappings.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
Tech guru Kurt "CyberGuy" Knutsson explains the science behind the Invisibility Shield, a 6-foot shield that makes people become invisible.
The International Olympic Committee on Friday announced plans to use AI in various Olympic aspects, including athlete identification, training and judging.
Tech guru Kurt "CyberGuy" Knutsson explains an easy trick to avoid squinting while working or surfing the web by zooming in on your personal computer.
Streaming giant Roku has recently been targeted by a pair of cyberattacks, and the company confirmed over a half million Roku accounts were compromised.
The Land Aircraft Carrier combines an all-terrain, six-wheeled vehicle with a two-seat aircraft, which features electric vertical takeoff and landing.
The European Union has sent TikTok a "request for information" on the video sharing platform's newest app, TikTok Lite, under the Digital Services Act, with the aim to clean up social media.
Stay up to date on the latest AI technology advancements and learn about the challenges and opportunities AI presents now and for the future.
The FBI is warning the public about a recent phishing scam via text that claims its targets owe money in Pennsylvania for unpaid road toll charges.
Your Apple Music settings may be revealing to your contacts what you're listening to. Kurt "CyberGuy" Knutsson explains the process to change those settings.

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Inertia Syndrome

When it comes to buying a stock or mutual fund... Read More

The Stock Market Investor?s Worst Enemy

Every stock market investor faces one primal enemy. An enemy... Read More

VooDoo Training For the Stock Market

If you go to Haiti or other places in the... Read More

Trapeze Artist - Swinging with the Stock Market

When we go to the circus we see a trapeze... Read More

Hedge Funds: the Good, the Bad, and the Ugly

Alfred Winslow Jones started hedge funds in 1949. He was... Read More

Structured Settlement; Lawyers in NY and Mutual Funds

Minority Report the movie may not be far off if... Read More

Attitude Is [Almost] Everything

I often play a little game with myself when I... Read More

Investing in Dividend Paying Stocks

I was recently interviewed for a press release through a... Read More

?Fears Only Enemy Is Action?

What a great statement!I just heard someone use it in... Read More

Selling Strategies - Setting a Stop Loss

Sometimes the best way of lowering exposure to risk is... Read More

Dividend Paying Stocks

I would like to share with the reader an article... Read More

Does Japan Matter?

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

Laws and Efficiencies and Theories of Diminishing Returns

The basis of diminishing return discussions surround such simple notions;... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Trading Tips No 8: Picking the Best Stock Market Price

Carefully thinking through your goal as a trader is of... Read More

Market Success

Who are the successful investors?There are those who follow the... Read More

Selection Vs Direction

As I have said many times before in this column... Read More

Complacency Indicator

If you haven't heard of the technical indicator with the... Read More

The Stock Market is a Roller Coaster: Prepare for the Ups and Downs

IT'S REMINISCENT OF THE OLD children's tale about an old... Read More

Trade Stocks for Real

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

Trading vs Investing

I often hear from people, "I don't trade. I invest.... Read More

A Common Misconception about Stock Prices

I cringe every time I hear a novice investor tell... Read More

Buy and Hold Investment Philosophy

Wall Street has been preaching the doctrine of Buy and... Read More

True Investment Road Maps

If you don't know where you are going any road... Read More

limo O'Hare Bonfield ..