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Originally Posted by Merlocke
Warren Buffet Method mixed with a few good tips.
Buy and Hold forever yes - but you need to know what to buy.
Any company that is committed to raising shareholder value and equity by acquiring assets and mergers is always going to have the news reflected in the price. If a .05c company just acquired a few large assets and hasn't been audited yet, chances are that after the audit - things are looking upwards from .05 yes?
http://ipointclub.blogspot.com/
My own blog on learning the stock market. I'm a newbie too - so good luck to us both  |
Again....it is not time to enter long positions, and that is what almost all "middlemen", and Buffet's method would advise doing:
Quote:
http://biz.yahoo.com/ap/080111/consumer_confidence.html
AP
Consumer Confidence Sinks to Record Low
Friday January 11, 6:38 am ET
By Jeannine Aversa, AP Economics Writer
Consumer Confidence Sinks to Record Low Over Worry About Jobs, Energy Costs, and Foreclosures
WASHINGTON (AP) -- Consumer confidence fell to an all-time low as worries about jobs, energy bills and home foreclosures darkened people's feelings about the country's economic health and their own financial well-being.
According to the RBC Cash Index, confidence tumbled to a mark of 56.3 in early January. That compares with a reading of 65.9 in December -- and a benchmark of 100 -- and was the worst since the index began in 2002....
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Buffet's method would not have served anyone well who entered the market in early september, 1929, with the Dow 30 index at a 393 intraday, record high....it declined to close at just 41 on July 8, 1932, and did not exceed 393 again until 1953.
How would the Buffet method. work for a Japanese investor who entered that country's stock market in late 1989?
<center><img src="http://chart.finance.yahoo.com/c/my/_/_n225"></center>
The US Fed is lowering short term interest rates in reaction to it's growing concern that declining housing prices and consumer demand will trigger a worldwied, deflationary depression. Watch for commodities, oil and metals other than gold and silver to steadily decline in price. If they hold firm and rise in spite of declining demand, then it will be apparent that the Fed is succeeding in destroying the purchasing power of the dollar via interest rate cuts. The Fed sees inflation as the only way out. Debtors will be less burdened with inflation than deflation. Stocks do not generally do well in an inflationary environemnt, but precious metals did in 1980 during the last period of US hyper inflation.