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
cleaning service near Bannockburn ..An investor can find and research the best stock on... Read More
I'll bet with almost anyone that has stocks or mutual... Read More
If you haven't heard of the technical indicator with the... Read More
When we go to the circus we see a trapeze... Read More
Right now there doesn't seem to be any "gold fever".... Read More
You may have wondered why your mutual funds have been... Read More
A colleague of mine just returned from a scuba diving... Read More
What does it mean to short a stock?This means that... Read More
Analyzing growth stocks is an important focus for any investor.... Read More
How many people went to a cash position this week?... Read More
Peter is a professional trader, Paul is not. Peter has... Read More
On Friday or Saturday evening my wife gets a movie... Read More
Most stock traders know that momentum trading can be a... Read More
Trading is a fascinating activity.There are so many layers to... Read More
Picking a beaten-down stock requires a different kind of selection... Read More
The Surgeon General of the United States says that smoking... Read More
We have two candidates for president that have really different... Read More
Robert Rodriguez likes to buy stocks at their lows. When... Read More
When you stand on the ocean shore and watch the... Read More
AS BUILDERS BEGIN WORK ON THE FREEDOM TOWER in New... Read More
On November 17 I bought 7 different mutual funds and... Read More
This is the continuing story of our two imaginary traders,... Read More
There is a famous cliff on the ocean in Acapulco... Read More
Now that you have some money burning a hole in... Read More
The recent criminal fiasco in the mutual fund industry is... Read More
pet-friendly home cleaners Mundelein ..One of the great "secrets" of successful people is discipline... Read More
Most stock traders know that momentum trading can be a... Read More
What is leverage?Here is a definition of leverage from an... Read More
Jack and Jill went up the hill to fetch a... Read More
Most stock market traders have a favorite technical indicator.The one... Read More
We are already in it, but you can't see it.... Read More
Trading is a fascinating activity.There are so many layers to... Read More
One of the basic laws of physics is that a... Read More
Even if you don't own any of their stock or... Read More
When purchasing mutual funds we are cautioned to read the... Read More
I was recently interviewed for a press release through a... Read More
1. Do not spread your money too thin.My friend has... Read More
How many times has this happened to you? You're at... Read More
An investor can find and research the best stock on... Read More
As the man said, "I've got some good news and... Read More
For the last few weeks we have seen the stock... Read More
Duck! No I don't mean a quack, quack. I meant... Read More
Before we get into all the good news out there,... Read More
Have you been listening to the talking heads on CNBC-TV?... Read More
Suppose your position has made a big move and you... Read More
Picture one of those clubs where only the real heavyweights... Read More
The Law of Chaos is the theory of random unpredictable... Read More
Four blind men were asked to give a description of... Read More
Hedge current portfolio positions and gain access to capital resources... Read More
We have two candidates for president that have really different... Read More
Stocks & Mutual Fund |