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Month: December 2018

When Investing Becomes Dangerous What Are Your Best Choices?

The long-term bull market is not only weakening; it is becoming a treacherous market according to Mad Money’s Jim Cramer. So, when investing becomes dangerous what are your best choices? Here is some of what Cramer says. Between the mixed messages on U.S.-China trade and concerns about an economic slowdown, day-to-day stock-picking is becoming very challenging for the average investor, CNBC’s Jim Cramer acknowledged on Tuesday. “We’ve got to call a spade a spade. This market isn’t just volatile, it’s treacherous,” he said after yet another turbulent trading session on Wall Street. “I don’t want the treachery, which is...

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How Much Will Your Investments Be Worth in One, Five, and Ten Years?

Investors are concerned today as the market corrects, the trade war threatens to be long term, the Trump tax cut effects are wearing off, and earnings are taking a hit. But, one needs to put things in perspective when looking at long term investing. When making investment decisions, ask yourself how much will your investments be worth in one, five, and ten years. Stock Market Investment Perspective The New York Times has an interesting article in this respect. Despite recent losses, stocks are riding high when you look at the longer term. Lately, the markets have been rattled about...

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How Does Algorithmic Trading Affect Your Investments?

The US stock market just experienced one of its more impressive down days ever, with the S&P 500 losing 783 points out of 27,782. This was not the worst percentage drop ever but it vied for the most points of the S&P 500 lost in one day. There are lots of valid concerns about the longevity of the current bull market such as an uncertain trade war, rising interest rates, and tepid earnings. However, much of the blame for the one-day drop in the market is being placed on trading algorithms that control roughly 80% of daily stock trading....

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How Do You Choose an Investment to Hold for Five Years?

The stock market goes up and down and the business news reports every daily gain and loss as though it were a prediction for permanent success, or long term dismal failure. Pundits have likened the reporting of the stock market to an old-fashioned melodrama. Nellie is tied to the railway tracks. Will the hero get there on time? But, he is delayed. But, maybe she will get loose. Maybe the train will stop. However, agonizing over the daily fluctuations of the market is not really the best way to pick a longer term investment. Many successful investors only invest for the long term. This is typically at least five or ten years. With this in mind, how do you choose an investment to hold for five years? Buy and Hold Investing Investopedia defines buy and hold investing. Buy and hold is a passive investment strategy for which an investor buys stocks and holds them for a long period regardless of fluctuations in the market. An investor who uses a buy-and-hold strategy actively selects stocks but has no concern for short-term price movements and technical indicators. This approach need not be limited to stocks but can be used in real estate investing, the purchase of US treasuries or bonds, or in the running of your own business. This approach ignores short term static and focuses on longer term prospects. Investopedia...

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