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
bathroom cleaning service Northbrook ..It has often been said that there is only two... Read More
You have decided to buy some stock or mutual funds,... Read More
Professional stock options traders use the term lean to refer... Read More
There are red lights, green lights, blue lights and spot... Read More
"If you don't know where you are going, any road... Read More
Everything you invest in has risk so you want to... Read More
When you invest in the stock market for ever-increasing cash... Read More
We have two candidates for president that have really different... Read More
How often have you come across an advertisement or e-mail... Read More
At some time in your life you have been on... Read More
As I have said many times before in this column... Read More
If you are a baby boomer, time is not on... Read More
On the 40 year journey through the turmoil of a... Read More
How can you dispel an illusion unless you look directly... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
No, this is not a symbol for some Latin number.... Read More
Reduce your investing and stock market risks by:Setting your sights... Read More
What a great statement!I just heard someone use it in... Read More
We all know the expression, "My country, right or wrong",... Read More
A common problem I often see when working with living... Read More
If you're a normal human being, your need to feel... Read More
Sometime around 1980, can't remember exactly, there was a flight... Read More
You have heard about a particular mutual fund from a... Read More
You must take the time once a month to review... Read More
So you're started trading, you bought some positions with your... Read More
insured cleaning company Wilmette ..I constantly hear the talking heads on CNBC-TV, the radio... Read More
There is so much involved in developing peak performance, that... Read More
No, this is not a symbol for some Latin number.... Read More
In 1960 an engineer working for a watch company in... Read More
One of the great "secrets" of successful people is discipline... Read More
The ABC's of Stock Trading SuccessStock trading success...why is it... Read More
What does it mean to short a stock?This means that... Read More
I feel that an investment strategy in the stock market... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
If you haven't heard of the technical indicator with the... Read More
The Macedonian Stock Exchange (MSE) is not operating successfully. True,... Read More
Now that you have some money burning a hole in... Read More
When most analysts, financial planners, fund specialists and investors try... Read More
This is the continuing story of our two imaginary traders,... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
Everyone who invests in the stock market wants to be... Read More
We all know that emotions control every decision that an... Read More
The Bollinger Band theory is designed to depict the volatility... Read More
Picture one of those clubs where only the real heavyweights... Read More
As the man said, "I've got some good news and... Read More
You've decided to try your luck at trading stocks or... Read More
Did you know you can make money (and a lot... Read More
If you are going to be a winner in the... Read More
You have decided to buy some stock or mutual funds,... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
Stocks & Mutual Fund |