When will the stock market stop going down and start up again? If we knew that we'd all be jillionaires. So what do you do now while stocks are going down and stealing away your money every day?
What does history tell us? Here is one very interesting fact. From 1920 to 2000 there were 3 bull markets that lasted about 16 years each. It seems the most recent one ended at the end of 1999. What is most scary about this is that after these long bull markets each one was followed by another period when the stock market went down or sideways for another 16 years. Look on the bright side. We only have 14 more years to wait for the next bull market.
Wait a minute ?
Wall Street has been telling us this is only a correction and now is the time to buy. What do you think they are going to tell you? They have stocks to sell and must make commissions or they will be out of business. Someone has to buy that stuff and guess who got picked? Right. You.
There are only a couple of safe places. A government-backed money market fund or some government short to intermediate bonds that will pay you about 5%. Unfortunately, too many people still think the stock market is going to make new high prices, but it ain't gonna happen. The smartest thing you can do is protect your money from further depreciation. If you don't take action now you will see your money disappear at about 10% to 20% (maybe more) over the next couple of years. I know your broker said the market always comes back. Well, I hope it does - in your lifetime. But you have to be smart enough to protect what you have right now.
The few wise men of Wall Street who speak the truth ? Sir John Templeton, Warren Buffet and a few others ? have said you will be lucky to make 5% over the next few years. To me that means you can be safely in bonds and sleep at night.
The great secret of success in the stock market is not buying; it is selling. Any fool can buy, but unless you know when to sell you are in trouble. Go thru the stocks and mutual funds you own right now and ask yourself this question: Would I buy this puppy now? If the answer is 'NO' then the best thing to do is sell it and put your money in something that will not depreciate over the next 14 years.
Rule one: Don't lose money. What are you doing to protect yours?
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.
1-888-345-7870; http://www.mutualfundmagic.com
Ever done any whitewater rafting or canoeing? Long periods of... Read More
Yesterday I received my monthly issue of MONEY magazine. This... Read More
There is a current movie entitled "Eternal Sunshine of the... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
If you are a baby boomer, time is not on... Read More
Unfortunately, most of you who are reading my column are... Read More
We all know the expression, "My country, right or wrong",... Read More
What can I expect to make my first year of... Read More
Since I can remember, and that's a long time ago,... Read More
Every day I hear someone on CNBC proclaim that "this... Read More
This is a guide to the different types of mutual... Read More
When will the stock market stop going down and start... Read More
The World Bank claims that some two billion of the... Read More
The spring-loaded rat catcher is the ultimate low-tech device invented... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
As GuruFocus updates the stock buys and sells of gurus,... Read More
Congress recently passed another new law that is supposed to... Read More
With all the bad news that has been dumped upon... Read More
Reach in your pocket and take out that big roll... Read More
This is the continuing story of our two imaginary traders,... Read More
When it comes to mutual funds, there is a lot... Read More
When you become interested in a stock or mutual fund... Read More
Have you bought any mutual funds this year or late... Read More
Before you buy another car you walk around the lot,... Read More
You've decided to try your luck at trading stocks or... Read More
disinfecting cleaning services Winnetka ..It seems that every day I turn on the TV... Read More
Why? Because I am going to shatter your conventional wisdom... Read More
From the book 'The Stockopoly Plan' by the author Charles... Read More
There are red lights, green lights, blue lights and spot... Read More
Both the stock market and oil prices rallied recently, which... Read More
You remember the story about the frog that was put... Read More
When it comes to buying a stock or mutual fund... Read More
The single most expensive stock market trades are those made... Read More
You remember (they show it on TV every year) the... Read More
Among the largest forces that affect stock prices are inflation,... Read More
I feel that an investment strategy in the stock market... Read More
We learnt the following the hard way! If any of... Read More
Most stock market traders have a favorite technical indicator.The one... Read More
Mutual funds were moderately successful in creating a presence in... Read More
If you are fed up with early redemption charges and... Read More
The stock market can present you with a lot of... Read More
Recently I watched my favorite football team lose a vital... Read More
When it comes to mutual funds, there is a lot... Read More
You probably have been told that options are risky. Even... Read More
Every day in any financial publication you will find the... Read More
A recent cartoon in my daily newspaper showed two guys... Read More
For the year 2000 we have seen hundreds of mutual... Read More
Stocks breakout from properly formed bases everyday but many investors... Read More
I am sure that if you have a brokerage account... Read More
Professional stock options traders use the term lean to refer... Read More
Stocks & Mutual Fund |