Stocks and Bonds and a Stock Picking Chimpanzee


Equities and bonds have always been an excellent long-term investment vehicle. In essence, it means ownership of the companies that are moving the world forward. The companies and underlying stocks on which they are based grow as the world grows. Financial markets are no longer dictated by a few as powerful markets as the New York Stock Exchange and Deutsche Boerse (German), but are rather impacted by a large and complex network of financial interconnections. There are of course many ways to invest in these slices of global companies, but for now, we'll be backing up the sexy, but risky, stock trading methods involving derivatives, currency trading and day-trading for other columns.

Lusha, the investment guru

In principle, investing in stocks and bonds is very simple: buy low and sell high. In fact, men and women with a doctorate or master's degree in public administration have made a fortune, alongside their names and TV celebrities on the financial network who have all written books on trends and graphs, flash indicators, stochastics and the psychology of investing. Even if the Dallas Cowboys win or lose, rallies are shared. They are all experts and they all have different opinions, literally thousands of opinions. Lusha, a chimpanzee now famous in Russia, throws its stool on a list of stocks listed on a chart and these actions tend to match or surpass the choices of some of the most sophisticated analysts in the world. What does this tell us? We can choose to pay big fees to analysts or hire a primate at a very low cost to become our stock picker.

Indicators and common sense

A good starting point for buying stocks, bonds and mutual funds is to learn a little bit about the indicators. These are tools that provide an analytical look at a company and its relative stock price. One of the most common is the Price Earnings Ratio (P / E), which compares the current stock price to its earnings per share. It makes sense! The P / E ratio is simply the price of the stock divided by the earnings per share (which can be found in any number of financial publications). A high P / E ratio may indicate that a stock is overvalued and a low P / E ratio may imply that an stock is undervalued, but it is only a matter of one. indicator and is totally flappable. For example, at the time of the Internet bubble, some companies had no profit because their P / E ratio was zero … nada … a big fat donut … and yet, those shares sold through the roof at a hyper inflated rate. prices. Which brings us to the most important indicator that you can use. It lies in the broad six-inch analyst hiding between your two ears.

Warren Buffet said, "Invest in what you know." For example, you may agree that there is an aging population of baby boomers and post-World War II. What does it mean? This could mean that businesses that sell services or products to seniors will be doing well in the years to come. You could invest in a start-up called FN Walkers Inc. (fictional), which has developed a compact titanium walking device with an integrated espresso machine. The company reports outstanding orders through the roof. Or you could consider government bonds. These are generally the safest investments on the planet and tend to succeed well in times of upheaval. Why? Because investors use security faster than waffles on a golf course. When missiles start firing around the world, investment dollars flow like rivers to the shelter and, as a result, the price rises. With bonds, forget stochastic oscillators and moving averages over 10 years and pray for instability and bad news!

You do not need an expensive investment guide or defecating a chimpanzee, after all.

Diversification by putting your eggs in a big basket

There is another way to buy stocks and bonds. It's through mutual funds. A mutual fund is simply a managed set of stocks, bonds, or commodities that are held in a large basket and managed by highly intelligent types. Mutual funds are offered in many bundles, such as funds based on Dow Industrial Stocks or growth companies, corporate bonds and government bonds, pharmaceuticals or emerging markets, in China. or in Brazil. The theory is that it is safer to own a hundred or so actions than to own multiple actions. Another benefit of owning mutual funds is that they are completely liquid, which means you can leave your position almost immediately. The performance of mutual funds is largely based on the expertise of the fund manager and the results can be closely monitored in many cases with a moving average of 1 year, 5 years, 10 years or even 20 years.

This Pet Peeve Author That Requires Anger Management Tips

Always, always, always, consider the advice of your investment dealers or expert advice. On October 9, 2007, Dow's industrial average reached $ 14,164 and reached an all-time high. She then began falling like a basic rider without a parachute, and finally reached a minimum of $ 7062 on February 27, 2009. The investment gurus were telling us to hold … that the market will rebound . Poppy, Fubar !!! Better to sell the stock as high as possible to go out, then go back when it convels in a pile splashed on the ground. If you go out some time after the start of the market sales, then the recovery once the dust settles, you would be in a much better position than just let the investment go up. In fact, even if the market is dancing around 12,000 would remain 15% below the market peak of $ 14,164. Is not that what brokers are supposed to do?

Whatever it is, I get sick on the fast roller coaster.

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