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 Lincolnshire ..Congress recently passed another new law that is supposed to... Read More
It has been said that low cost or even free... Read More
Now that you have some money burning a hole in... Read More
The single most expensive stock market trades are those made... Read More
Money management starts with protecting your capital, realizing profits and... Read More
Before you embark upon a journey of trading stocks or... Read More
A PEG ratio cannot be used alone but is a... Read More
Every successful trader has a winning system. There are of... Read More
Sometimes the best way of lowering exposure to risk is... Read More
Last time we looked at the real performance of the... Read More
Intervention. Now don't let that big word scare you. The... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
I feel that an investment strategy in the stock market... Read More
Picture one of those clubs where only the real heavyweights... Read More
One Saturday morning, while he was sitting at his computer... Read More
Ever jumped out of an airplane? It's OK if you... Read More
Every day I see in the financial section of newspapers... Read More
Trading is a fascinating activity.There are so many layers to... Read More
The higher the market goes the more confusing are the... Read More
For weeks, no, months we have been bombarded with nothing... Read More
The thinking process of the brain relating to the... Read More
We learnt the following the hard way! If any of... Read More
According to Investopedia Inc. the penny stock market has seen... Read More
Every day I hear from the "experts" on CNBC-TV and... Read More
On November 17 I bought 7 different mutual funds and... Read More
on demand house cleaning Lake Forest ..Congress recently passed another new law that is supposed to... Read More
Someday you may want to retire and continue to live... Read More
If you are going to be a winner in the... Read More
There is a current movie entitled "Eternal Sunshine of the... Read More
If you are serious about making and keeping money by... Read More
Every day I see in the financial section of newspapers... Read More
Have you seen all those big full page ads for... Read More
IT'S REMINISCENT OF THE OLD children's tale about an old... Read More
It has fallen upon the consumer to make our economy... Read More
The Law of Chaos is the theory of random unpredictable... Read More
After finding the price of a particular stock, usually the... Read More
When it comes to stock market trading it PAYS to... Read More
That sounds like good advice doesn't it? Don't lose all... Read More
It is commonly reported that the stock market averages about... Read More
Most stock traders know that momentum trading can be a... Read More
Day trading is all about making buy and sell decisions.... Read More
With an insecure job market, overworked employees, insufficient retirement savings... Read More
The Dow Theorycharles h. dowcharles h.... Read More
It's about time someone spoke the truth concerning outsourcing. The... Read More
I am taking the time to help others learn the... Read More
I often hear from people, "I don't trade. I invest.... Read More
Every stock market investor faces one primal enemy. An enemy... Read More
If you are fed up with early redemption charges and... Read More
I made my very first investment in the stock market... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
Stocks & Mutual Fund |