SPY, QQQQ, DIA, IWM, EFA and EEM. These are the six ETFs every investor ought to know. Get familiar with them. Add them to your watch list, and be aware of how they could fit into your portfolio. Words: 1015
Read More »Monthly Archives: January 2010
Investing in Long Term Bonds Now a High Risk Investment
In a search for safety and income, investors are stampeding into the apparent safety of government bonds and bond mutual funds. Over the last year, bonds have been purchased in record amounts despite historic low interest rate levels. It is likely that many of these investors do not understand the risks in bonds. These investors, with a false sense of security, are unknowingly setting themselves up for another rough rollercoaster ride ahead. Words: 599
Read More »The ‘Smart’ Money is Replacing ‘Magic’ Money With ‘Real’ Money. What About You? (+2K Views)
We are currently about one year into a two year grace period before people will begin to realize that their money isn’t 'real' but simply 'magic' money. In the meantime the 'smart' money is buying up hard assets like gold, knowing that it is the only form of money that isn’t simultaneously someone else’s liability and, unlike 'magic' money, can’t be created out of thin air. Words: 785
Read More »How to Invest with Spectre of Rising Interest Rates on Horizon (+2K Views)
With the global economy growing, with federal deficits exploding, and with central banks printing money like there’s no tomorrow, there can be little doubt that rising markets will also bring rising interest rates. Who gets hurt when interest rates rise? The answer is all borrowers with debts coming due because they must pay more to roll them over and all lenders who have extended medium- or long-term credit at fixed rates because they suffer an immediate loss in the market value of their loans. Words: 928
Read More »Best Hedge Against Inflation Is Owning Gold and Silver Mining Stocks (+3K Views)
We are about to encounter major inflation and the absolute best hedge against such inflation is by investing in the companies that mine gold and silver. You often get leverage of 2 to 4 times the price appreciation of gold or silver. If gold goes up by 50%, your miners may very well double or triple in value. Words: 1426
Read More »U.S. Dollar Tied to Equity Market Movements (+2K Views)
The USD remains on a steady downward path and is likely to continue to face a combination of both cyclical and structural negative forces. Words: 408
Read More »Financial Elite’s Behavior Has Opened Floodgates for Gold (+2K Views)
In spite of philosophical differences in many areas of politics and economics, Ron Paul and Simon Johnson agree that the cosiness that exists between the U. S. Congress and the financial elite has not worked, and is not working, in the best interest of the average American. They both suggest that major changes must be made in that relationship to strengthen the American economy. Is it too late, however, to avoid the repercussions of an even weaker greenback, rising inflation and the opening of the floodgates in the price of all investments related to gold and silver? Words: 1336
Read More »The 4 Stages of Transition from Market Bottom to Market Top (+2K Views)
Whether the stock market is topping out and the economy's 2010 trajectory will disappoint is subject to debate but what probably can't be debated - and something that truly astonishes me - is the brief period of time in which we have moved from fear to greed. There are four classical stages in a move from market bottom to market top and then back again. How do they apply to the situation this time around? Words: 573
Read More »Has the Yellow Metal Lost its Lustre? (+2K Views)
Don’t invest in gold just because it’s popular. Don’t lose sight of longer-term historical investment results, especially during short-term periods of extreme volatility and trending markets. Short-term, return-chasing investing is precisely what is driving this modern-day gold rush and that is exactly why you should be looking elsewhere. Words: 860
Read More »How to Become a Successful Investor – It’s All Here! (+2K Views)
To be a succesful investor you need to have the right attitude, know what mistakes to avoid, develop some winning traits, identify some key investment themes for the year and develop and execute a plan around them. Words: 1606
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