I receive emails from Morningstar. This company provides statistics and analysis of just about every publicly traded stock company you can think of as well as voluminous information on mutual funds around the world.
You can ask them about a company's sales, management, marketing plan, their performance within a corporate sector, ratios of all kinds, etc, etc. The have it. After you have gleaned all these facts and analyzed them there is still one unanswered question. If I buy this equity will it go up? You definitely will not get that answer and that is the only answer that means anything. It is the bottom line for all research.
Brokers and financial planners use this type of service to determine if a stock or fund is a "good" buy. When it comes right down to it you must ask, "If I can get this information then so can everyone else so why is it any good?" It isn't. After you have been doing this a few years you will find that it is a useless exercise. Brokerage firms want you to do it so that if the stock goes down they can say to you that it was your decision to buy it based on all those "facts". Yes, you had all that information, but it is nothing more than disinformation.
They tell you that every conservative investor does his homework, his research. The term conservative investor is an oxymoron, like military intelligence or honest politician. There is no such thing as a conservative investment if there is the slightest possibility that you could lose all or part of your money. And that is true in just about everything whether it is stocks, bonds, real estate, collectibles, you name it.
Their ad stated that every month they would have information on the best and most popular mutual funds. Since when has popularity got anything to do with a stock or a fund going up? Fidelity Magellan is one of the most popular mutual funds in the world yet it dropped from $145 to $73 (a 50% loss) and is now trading at $100 still down 31%. Janus Balanced Fund dropped from $25 to $17.50 and has since rallied to $20. TR Price Japan Fund hit a high of $16, fell to $5 and is now $8 still a 50% loss. Did any of their "information" ever tell you to sell? Popularity is not a yardstick for profits.
And they also will give you the hot picks of 150 analysts. You might as well use a dartboard as listen to those guys. They are high priced guessers who put you in and never get you out when something starts down. Morningstar is providing you with information. The information is not worth the paper it is written on.
Their facts are useless even though they are facts. Bottom line: research is worthless.
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 ..All of the talking heads have been telling us that... Read More
Wall Street's watchword has always been diversification, but what does... Read More
Did you know you can make money (and a lot... Read More
One of the great truisms of Wall Street is "Don't... Read More
TOO OFTEN, INVESTORS SIMPLY CHOOSE TO follow the crowd. This... Read More
Everybody is riding the Wall Street Roller coaster. Even if... Read More
If you are fed up with early redemption charges and... Read More
As one of my regular readers you know I have... Read More
If you don't know where you are going any road... Read More
You'd have had to be living on a desert island... Read More
Have you bought any mutual funds this year or late... Read More
Recently I was invited to appear on a live CNNfn... Read More
On Monday, November 25, 2000 Investor's Business Daily listed on... Read More
Suppose your position has made a big move and you... Read More
When is a dividend not a dividend?The latest thing "conservative"... Read More
Because there are so many stocks that are NOT paying... Read More
There are many important things you need to know to... Read More
If you have not back tested your trading system, you... Read More
If you're like many investors who squander those small dividend... Read More
Look back over the years and try to remember how... Read More
Jack and Jill went up the hill to fetch a... Read More
When you become interested in a stock or mutual fund... Read More
Let's say you are interested in this one company. You... Read More
What can I expect to make my first year of... Read More
If you go to Haiti or other places in the... Read More
Wood Dale limo ..Mutual funds by definition are a mixed bag of stocks,... Read More
The trading method you employ to approach the stock market... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
Money: the most charged word in the planet. It means... Read More
I read a comment by a forum member on another... Read More
Over the past few months, several investment professionals have brought... Read More
For the last few weeks we have seen the stock... Read More
Question: How does it get better when it gets worse?Last... Read More
There is no question that the stock market is being... Read More
An investor can find and research the best stock on... Read More
Before you buy another car you walk around the lot,... Read More
Mutual funds were moderately successful in creating a presence in... Read More
We all know the expression, "My country, right or wrong",... Read More
Every year I go to the Money Show in Orlando,... Read More
The ABC's of Stock Trading SuccessStock trading success...why is it... Read More
The stock market has been in an up trend for... Read More
The thinking process of the brain relating to the... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
When you become interested in a stock or mutual fund... Read More
Economists know more about how the fragments of society work... Read More
Recently I was invited to appear on a live CNNfn... Read More
When purchasing mutual funds we are cautioned to read the... Read More
Inverted interest rates? What's that? Who cares? Even if you... Read More
If you have talked to a stock broker or financial... Read More
You've decided to try your luck at trading stocks or... Read More
Stocks & Mutual Fund |