Those who invest carefully over the course of many years are likely to end up as very happy campers…notice, we didn’t say gamblers. Here’s a simple conclusion If you’ve been avoiding the market because you believe it’s a casino, think twice. At the same time, money markets and bonds start paying out more attractive rates. 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. 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. Individual investors have a huge advantage over mutual fund managers and institutional investors, in that they can invest in small and even MicroCap companies the big kahunas couldn’t touch without violating SEC or corporate rules.
Casino Empire happened in 2002. 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. Remember that the market goes up more than it goes down. Don’t let fear and uncertainty keep you from participating. Look for red flags in the financial news, such as the beginning of the recent housing slump or the international credit crisis. “The whole thing is rigged.” There may be just enough truth in those statements to convince a few people who haven’t taken the time to study it further.
For those who have virtually any questions regarding exactly where along with how to make use of เครดิตฟรี 100 ทํา 300 ถอนได้หมด, you’ll be able to call us in our internet site. One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. “It’s just a big gambling game,” some say. Read the latest news stories on the company and make sure you are clear on why you expect the company’s earnings to grow. If you don’t understand the story, don’t buy it. 3) Do your homework. Study the balance sheet and annual report of the company that’s caught your interest. Nearly every company has an occasional setback.
Don’t panic over a little bit of negative news from time to time. At the very least, know how much you’re paying for the company’s earnings, how much debt it has, and what its cash flow picture is like. But, after you’ve bought the stock, continue to monitor the news carefully. Here’s why they’re wrong: The results for their bottom lines are often disastrous. As a result, they invest in bonds (which can be much riskier than they presume, with far little chance for outsize rewards) or they stay in cash.
Day traders and very short term market traders seldom succeed for long. 4) Be patient. Predicting the direction of the market or of an individual issue over the long term is considerably easier that predicting what it will do tomorrow, next week or next month. If your company is under priced and growing its earnings, the market will take notice eventually. The property investor known for his flash lifestyle and luxury cars said he purchased the home in Gisborne, 54km north-west of Melbourne, in November after it passed at auction on the reality TV series.