The stock market has gone virtually nowhere for 10 years, they complain. While the market occasionally dives and may even perform poorly for extended periods of time, the history of the markets tells a different story. Many people will find that hard to believe. My Uncle Joe lost a fortune in the market, they point out. Simeon Boikov, above with his wife Ekaterina Olshannikova, known as Mrs Cossack, at a rally last year before he was locked up for six months for naming an alleged paedophile.
He has been holed up in the Russian Consulate in Sydney since December The self-styled ‘Aussie Cossack’ was convicted in his absence in February of assault occasioning actual bodily harm to a 76-year-old man at a rally in support of Ukraine in December at Sydney’s Town Hall. Remember that the market goes up more than it goes down. Should you loved this post and you would like to receive more info relating to egames online casino assure visit the page. Even poor market timers make money if they buy good companies. Of course, severe drops can happen in times of low interest rates as well.
Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. Don’t let fear and uncertainty keep you from participating. 3) It is the only game in town. Outside of investing in commodities futures or trading currency, which are best left to the pros, the stock market is the only widely accessible way to grow your nest egg enough to beat inflation. Hardly anyone has gotten rich by investing in bonds, and no one does it by putting their money in the bank.
Knowing these three key issues, how can the individual investor avoid buying in at the wrong time or being victimized by deceptive practices? Imagine, too, that all the games are like black jack rather than slot machines, in that you can use what you know (you’re an experienced player) and the current circumstances (you’ve been watching the cards) to improve your odds. 1) Yes, there’s an element of gambling, but- Imagine a casino where the long-term odds are rigged in your favor instead of against you.
Now you have a more reasonable approximation of the stock market. 1) Consider the P/E ratio of the market as a whole and of your stock in particular. Most of the time, you can ignore the market and just focus on buying good companies at reasonable prices. Compare historical P/E ratios with current ratios to get some idea of what’s excessive, but keep in mind that the market will support higher P/E ratios when interest rates are low.
But when stock prices get too far ahead of earnings, there’s usually a drop in store. If investors can earn 8% to 12% in a money market fund, they’re less likely to take the risk of investing in the market. 2) When inflation and interest rates are soaring, the market is often due for a drop…be alert. High interest rates force companies that depend on borrowing to spend more of their cash to grow revenues.