vinyl siding installation concrete siding lincolnshire hardie board siding wheaton vinyl siding cost lake villa painting aluminum siding skokie .. Chicago Drug testing

The Information Age

It is wonderful to be alive in the information age. We know in a matter of seconds the change in the value of gold in Switzerland, the death of a world leader or the birth of a peasant in Israel.

We are inundated with facts and figures and the emotional tribulations of both famous and infamous people. Can we possibly assimilate all this? Does it help us in our daily lives?

When you begin to analyze it you realize all this information is just an agglomeration of stuff and contains no wisdom. If you were to memorize the Encyclopedia Britannica would that make you wise? Not really. You might know all about everything and you could answer questions on any subject, but unless you could correlate the facts and understand their interaction it would be of not much use at all.

I am in the financial industry. Would it help me to make more money to have memorized the Morningstar Manual? Oh, I would know the PE ratios and earnings of every company and a lot more, but will all that information tell me if the price of a company's stock will go up? Again, not really.

Wall Street has the public believing the myth that you must do research; find out everything about a company, its competitors and that industry. Now that you have done that and all the figures say that according to conventional wisdom this is a "good" company does that mean the stock price will go up? Not really. When you do your historical study you will find there is hardly any correlation in price appreciation and the fact it is a "good" company.

Financial research is worthless. If it were wisdom everyone would be rich.

The reason Wall Street brokerage companies insist you do nonsense research is so you won't sue them when their "recommendations" don't make you any money. There is only one thing you really need to know. Is the price of the stock steadily going up? The simple way to do this is to check the weekly closing price for the past several years. You can get this data at the library. If it has a nice steady upward path what more do you need to know? Everything that is known about this company is reflected in the last price transaction. In that price you are seeing all the world's research.

Information per se is not wise. It is the intelligent application of information that is wisdom. Apply your own common sense wisdom. Don't listen to Wall Street.

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:

No Load Mutual Funds: Investment Hype vs. Investment Help

With the internet such a huge part of our daily... Read More

The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets

A Guide to Using Stop Loss Orders Stop losses are... Read More

Exchange Traded Funds Primer

Exchange Traded Funds (ETFs) are a group of passive index... Read More

My Neighbor Got A New Car

I don't know what kind it is, but I saw... Read More

Political Investing

We have two candidates for president that have really different... Read More

Trading Tips No 2: The Big Lie in the Stock Market

It is commonly reported that the stock market averages about... Read More

Mutual Fund Honor Roll ? Buy High, Sell Low by Chasing Performance

Buy high and sell low -- It's not a typo.Millions... Read More

Stock and Fund Dividends

When is a dividend not a dividend?The latest thing "conservative"... Read More

China Syndrome

There has been great condemnation recently because China has been... Read More

Mutual Fund Expense Lies

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

Dont Buy Stocks based on P/E Ratio alone

I use the P/E ratio as a secondary indicator for... Read More

How to Make Big Money Safely in Stock Market

(1) Stock Market is Tough Place to Make Any Money... Read More

Dollar Cost Averaging

Dollar cost averaging is one of the most popular ideas... Read More

Adding Funds

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

Red, Green, Yellow - or - Stop, Go, Go Very Fast: Which Describes Your Online Trading?

Ever notice how behavior in one area of life can... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

How To Beat The Mutual Fund Companies At Their Own Game

You'd have had to be living on a desert island... Read More

Forecasting the Stock Market

Every day I see in the financial section of newspapers... Read More

Successful Trading ? Taking Profits - Part 1

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

Eternal Sunshine

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

Chart Reading

As an investor you will want to check out any... Read More

Shadow Bull

As one of my regular readers you know I have... Read More

Its Better

Question: How does it get better when it gets worse?Last... Read More

Size Counts!

What the heck am I talking about?It is often said... Read More

Investing in Trash Company Stocks

Refuse is a serious issue in any society, about as... Read More

efficient street lamps led wallpack Pete's produce ..
efficient street lamps led wallpack Pete's produce ..