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.
You can ask them about a company's sales, management, marketing plan, their performance within a corporate sector, ratios of all kinds, etc, etc. The have it. After you have gleaned all these facts and analyzed them there is still one unanswered question. If I buy this equity will it go up? You definitely will not get that answer and that is the only answer that means anything. It is the bottom line for all research.
Brokers and financial planners use this type of service to determine if a stock or fund is a "good" buy. When it comes right down to it you must ask, "If I can get this information then so can everyone else so why is it any good?" It isn't. After you have been doing this a few years you will find that it is a useless exercise. Brokerage firms want you to do it so that if the stock goes down they can say to you that it was your decision to buy it based on all those "facts". Yes, you had all that information, but it is nothing more than disinformation.
They tell you that every conservative investor does his homework, his research. The term conservative investor is an oxymoron, like military intelligence or honest politician. There is no such thing as a conservative investment if there is the slightest possibility that you could lose all or part of your money. And that is true in just about everything whether it is stocks, bonds, real estate, collectibles, you name it.
Their ad stated that every month they would have information on the best and most popular mutual funds. Since when has popularity got anything to do with a stock or a fund going up? Fidelity Magellan is one of the most popular mutual funds in the world yet it dropped from $145 to $73 (a 50% loss) and is now trading at $100 still down 31%. Janus Balanced Fund dropped from $25 to $17.50 and has since rallied to $20. TR Price Japan Fund hit a high of $16, fell to $5 and is now $8 still a 50% loss. Did any of their "information" ever tell you to sell? Popularity is not a yardstick for profits.
And they also will give you the hot picks of 150 analysts. You might as well use a dartboard as listen to those guys. They are high priced guessers who put you in and never get you out when something starts down. Morningstar is providing you with information. The information is not worth the paper it is written on.
Their facts are useless even though they are facts. Bottom line: research is worthless.
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
best cleaning company Highland Park ..(1) CHK stock price $16.74, NAV $32.5CHK is my favorite... Read More
Right now there doesn't seem to be any "gold fever".... Read More
How is it possible that trash Companies are posting less... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
In 1960 an engineer working for a watch company in... Read More
In November of 2000 when the NASDAQ was trading at... Read More
On Friday or Saturday evening my wife gets a movie... Read More
What does it mean to short a stock?This means that... Read More
The gleam and bright lights of Wall Street lure in... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
If you've ever flipped on the television to CNN Financial... Read More
There is so much involved in developing peak performance, that... Read More
Let's discuss commodities; with the latest Enron situation, it is... Read More
People are always asking me when should I sell my... Read More
For some "long term" would mean holding a stock position... Read More
With the internet such a huge part of our daily... Read More
This is the continuing story of our two imaginary traders,... Read More
Let's first define insanity. It is doing the same thing... Read More
When purchasing mutual funds we are cautioned to read the... Read More
Mutual funds were created with the idea that one person... Read More
Many people would like to diversify their portfolios to expand... Read More
"There is nothing more frightful than ignorance in action!" Johann... Read More
I go to the Money Show every year to visit... Read More
Reach in your pocket and take out that big roll... Read More
Money management starts with protecting your capital, realizing profits and... Read More
high-end home cleaning Winnetka ..Investors who exclusively use broadly diversified, no load mutual funds... Read More
Who are the successful investors?There are those who follow the... Read More
Now that you have some money burning a hole in... Read More
After the publication of the first part of this two... Read More
Do you have a nest egg? You know, a place... Read More
The bulls and bears of the stock market are both... Read More
Its dinnertime and the phone rings. It's Joe Noname with... Read More
To begin, you might look at playing the stock market... Read More
You'd have had to be living on a desert island... Read More
Index Fund Trading can be one of the most profitable...or... Read More
In 1960 an engineer working for a watch company in... Read More
If you have not back tested your trading system, you... Read More
I continually hear from economists, talking heads, other market letter... Read More
It is commonly reported that the stock market averages about... Read More
The date October 13, 2000 will forever be embedded in... Read More
It is finally catching up with them. The brokerage companies... Read More
The higher the market goes the more confusing are the... Read More
Wall Street has been preaching for years and years to... Read More
Has your broker been calling you recently with the "great... Read More
If you are fed up with early redemption charges and... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
When we go to the circus we see a trapeze... Read More
What can I expect to make my first year of... Read More
Over the past few months, several investment professionals have brought... Read More
I have a 2-car garage. There are nice shelves on... Read More
Stocks & Mutual Fund |