| |
| |
| CLICK TO GET BACK TO INDEX STOCKS MUTUAL FUND INFORMATION | |
|
|
|
Intervention
Intervention. Now don't let that big word scare you. The talking heads on TV have been discussing it all week because the major banks of the world are going to "prop up" the Euro. What the heck is the "euro"? This is a currency just like the British Pound, the French Franc and the German Duetschmark, but it supercedes those currencies and is supposed to ultimately replace them as the money of all the European countries. It is another layer on top of the currency of each country. It was introduced in January 1999 and has been sinking ever since. It was supposed to stabilize the European currencies, but all the underlying currencies have been going down in relation to the US Dollar. When the tide goes out the boat goes down. The tide is the various currencies and the boat is the Euro. Everything must be converted to Euros. Oil is world-priced in U.S. dollars so it takes many more Euros now than it did early this year. This principle applies to everything that is bought abroad by European countries. Why do we care? Politics. Let's make this simple. Take your neighborhood and use the housing market as an example. Ever had a "soft" market for home values in your area? Of course you have. Everyone has. So the local real estate boards decide the way to keep prices from going down is to buy houses as they come on the market at the current prices even though the real values continue to slip lower. What happens? Immediately prices strengthen, but slowly they start to weaken again and finally the real estate boards run out of money and suddenly when the artificial buying ceases the market collapses to a lower price than where they started their "intervention". Brilliant strategy! As I have said in my book an economist is the last person you want to consult about what is going to happen in the real market. Most of them don't know the price of a loaf of bread and quart of milk. They will quote you econometric formulas until they are blue in the face and no two of them will agree on anything. Until the underlying economies of the European countries strengthen with good sound economic principles, primarily laissez-faire, you will not see a long-term positive effect on the Euro. If you aren't confused you by now, don't worry about it because none of us peons can get these geniuses to use good common sense. 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 al@mutualfundstrategy.com; 1-888-345-7870
MORE RESOURCES:
Stocks-Mutual-Funds - Google News |
 |
|
|
RELATED ARTICLES
Managing Investing and Stock Market Risks Reduce your investing and stock market risks by:Setting your sights on the long term, patiently riding with the ups and downs!If you have the time to be patient, you can benefit from time diversification. The more numerous good years for stocks outweigh the bad, pulling your return up. I Love To Lose Money Well, not really. What I mean is I don't mind losing a small amount when I have to sell a stock or mutual fund that is going down or taking away the profit I have made. Race Horses and Mutual Funds For years investors have been taught to look into the composition of a mutual funds. In other words the "experts" want you to take the time to analyze the stocks within the mutual fund portfolio, categorize them by industry group and try to understand the objective of the fund manager. Stock Analysis 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. Structured Settlement; Lawyers in NY and Mutual Funds Minority Report the movie may not be far off if the Head of the SEC has anything to say about it. At a Senate Banking Committee hearing on CSPAN, William Donaldson said that the beloved SEC can no longer sit back and "mop-up" after scandals break. Trading Baskets II: The Crapolio, A Roll of the Dice in the Stock Market In a previously written article, we expanded the use of the term "Trading Baskets" to include stocks from different sectors or industries. Now I want to share with you an approach to day trading or swing trading that I had some success with back in the wild and woolly, pinnacle days of day trading that may still work today. Lies, Damn Lies and Mutual Fund Returns How many times has this happened to you? You're at a social function and the conversation turns to investing. Pretty soon, people are comparing how well their investments are doing. Emotional Maturity If you are going to be a winner in the stock market you must have emotional maturity. I did not say you had to be smart or know how to pick stocks and mutual funds. Stealth Bull If you have been watching the stock market at all you are probably very confused. You are not alone. Economists In today's volatile and confusing stock markets everyone is searching for a guru who knows which way the market is going and when. Ask any economist and he will have an answer. Struggling Stocks, Booming Commodities 04/28/2005NASDAQ dropped -12.5% year to date in 2005. Is Active Trading The Answer? One of the main reasons many of us get into investing is to become financially independent. Who isn't trying to amass a portfolio with enough income to ensure that we don't have to work when we should be playing golf or traveling the world. Different Ways of Buying Stocks Let's say you are interested in this one company. You read its annual report, like what you see and your calculation indicates that the stock is trading way below its fair value. Stock Trading - Daddy, Why Arent We Rich? One Saturday morning, while he was sitting at his computer studying the market, David's 7 year old daughter came up, tugged at his shirt sleeve, and said, "Daddy, why aren't we rich?" He looked his child in the eye, and thought to himself, what a great question - Why aren't we rich?As she stood there expectantly waiting for an answer, he struggled to come to terms with the realization that, although he had focused his complete attention on trying to create wealth for more than 10 years, he had never actually made any real headway.He had bought and sold many Stocks and several properties over those years, but had never made any real money. Nest Eggs and Omelets Do you have a nest egg? You know, a place you are stashing away money for the future - retirement, down payment on a house, the kids education. That kind of thing. Successful Trading - Taking Profits - Part 2 Suppose your position has made a big move and you moved your stop to your purchase price as recommended. Then let's say your stock continues to make a big move and now we're asking again the questions we asked back in the first paragraph. Financial Crime Congress recently passed another new law that is supposed to outlaw financial crime. Corporate officers will be sent to jail for "cooking the books" as it is called. Online Broker Trade History Not Doing the Job Let me start by saying that.. It Cant Be Done Wouldn't it be nice if you were only in the stock market when it was going up and have everything transferred to cash while it is going down? It is called 'market timing' and your broker or financial planner will tell you "it can't be done". What that person just told you is he doesn't know how to do it. More Window Dressing Two weeks ago I wrote about what the Securities and Exchange Commission was doing to regulate the mutual fund industry to help the small investor, the "poor folks". It really added up to zero.
|
|
|
| Index | Sitemap
TOS | PRIVACY | DISCLAIMER | Copyright © 2007 Paulo Daniel
domainsdaniel.com |