One of the basic laws of physics is that a body in motion will remain in motion unless disturbed by another force. What has this to do with the stock market?
For the last 2 years the long-term trend of the market has been down with a few momentary deviations. When a baseball player hits a ball it comes off his bat at full speed and as it makes its arc through the air it slows down and is buffeted by the wind. Sometimes he hits a weak shot and once in a while he gets a home run. You can almost tell when it leaves the bat whether it will be a good one.
On March 1 and March 4 the market came to the plate and it went up so fast and with so much energy it looks like we have a home run in the making. It has been my experience not to argue with an accomplished athlete. The athletes we are dealing with here are the professional traders such as hedge fund and mutual fund managers. They have come forward and put their money where their mouth is. It looks like the ball is going to go a long way.
You as the small investor will want get on board while the ball is in the upward trajectory. Picking individual stocks is extremely difficult as I discussed in last week's column, but it can be done if you want to do the work. There is an easier way.
No-load mutual funds are the answer. Good ones (that means those that have been going up steadily for the past 6 months) are relatively easy to find, Do NOT buy any fund with a commission charge. If you do you will be starting in a hole and must crawl out before you have a chance to make money. Brokers will tell you that the load funds are better. They are lying.
There are several places to look. At the library you should see the Investor's Business Daily newspaper. In the Mutual Fund section you will find the top 25 funds for the past 6 months. This is not published every day so you will have to look in several issues to find it. You can make a list of the first 15 and in the same newspaper is the listing of all mutual funds you will see their toll free number. Call each one to be sure it has no commission charge or redemption fee. You can select from this group for your investments.
If you don't have a computer at home use the one at the library and go to www.smartmoney.com. Under mutual funds they will show you a list of the best performing funds for the past year. They also show if they have a commission charge. From this list you will be able to buy some very good no-load funds.
Which ones you buy are not that important as long as they are going up. Never keep any fund that is not on one these lists. When they stop going up it is time to sell them.
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
no-contract cleaning service Mundelein ..What can I expect to make my first year of... Read More
How many times has this happened to you? You're at... Read More
Every day I hear someone on CNBC proclaim that "this... Read More
Have you ever thought of investing? Do you have a... Read More
This is a guide to the different types of mutual... Read More
For years I have been saying you must have a... Read More
Much like the middle child, mid-cap stocks have long struggled... Read More
When you stand on the ocean shore and watch the... Read More
Ever done any whitewater rafting or canoeing? Long periods of... Read More
In a previously written article, we expanded the use of... Read More
On November 17 I bought 7 different mutual funds and... Read More
I don't know what kind it is, but I saw... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
A few years back ? it seems like an eternity... Read More
When it comes to 401k's there is an overabundance of... Read More
Both the stock market and oil prices rallied recently, which... Read More
I am hearing predictions by brokers, financial planners, talk show... Read More
If you are a baby boomer, time is not on... Read More
After some forty years of banking and investments, I retired... Read More
You read and hear a lot about hedge funds. Unfortunately,... Read More
Forget making a profit; instead focus on the income provided... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
I am taking the time to help others learn the... Read More
With the internet such a huge part of our daily... Read More
I have a 2-car garage. There are nice shelves on... Read More
maid service near Glenview ..Buy high and sell low -- It's not a typo.Millions... Read More
Hello Inflation, it has been awhile, I see you on... Read More
An insane person cannot evaluate an insane evaluation system.As you... Read More
When it comes to buying a stock or mutual fund... Read More
Stock investment advice is easy to find. Do you get... Read More
Every day I see in the financial section of newspapers... Read More
In 1960 an engineer working for a watch company in... Read More
One Saturday morning, while he was sitting at his computer... Read More
Every year I go to the Money Show in Orlando,... Read More
We all know the expression, "My country, right or wrong",... Read More
The Winter Games for the Olympics are coming up soon... Read More
Before you buy another car you walk around the lot,... Read More
Wall Street's watchword has always been diversification, but what does... Read More
"Buy and hold" is one of the most heralded investment... Read More
One of the great truisms of Wall Street is "Don't... Read More
When it comes to 401k's there is an overabundance of... Read More
If you have not back tested your trading system, you... Read More
Most people think the stock market is a zero sum... Read More
I receive emails from Morningstar. This company provides statistics and... Read More
As I said in Part I everyone in the insane... Read More
Because you don't feel too sure about which stock or... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
Did you know you can make money (and a lot... Read More
What does it mean to short a stock?This means that... Read More
One of the greatest challenges of investing in stocks is... Read More
Stocks & Mutual Fund |