Let us create a 3d Digital eBook for you! DigyCat.com
Global Markets: A Window on the World Economy
Expectations drive the market. Every stock price is driven by what people expect the company to do. That's why all the talk about a strong or weak economy has such an impact.But those aren't the only expectations moving us. We've seen the impact of war and terrorism worries on markets and the impact of SARS concerns on Asian markets.
Markets move on a combination of expectations and reality, and every reality leads us to new expectations. Great earnings? I expect the company will earn more. A sales slump? I expect the company to struggle next year too. The question is: if all decisions are made on expectations (and they are), how can things turn around? If our expectations are so colored by past events, we'll expect the future to be as grim as the past, and nothing can ever change, can it? Ah, but we have long memories. Ask yourself: what would it take for you to change your outlook? What would it take for all of us to change our outlook? The answer to that last question effectively tells us when the market will turn, because when everyone is upbeat and buying, the market will fly.
Consistently rising earnings will change expectations, but how much positive news is necessary before the turn begins? Will some companies turn before the market? Consider Constellation Brands or Fortune Brands, two of our recommendations that haven't seen any drops, and in fact are defying estimates of weakness. Should we expect those shares to rise based upon their own positive trends, or will the market turn first?
The answers aren't simple or uniform. There's no answer, only conjecture. We can make estimations. In the past, we've seen market turnarounds led by small stocks or led by big stocks, led by technology, or led by consumer goods. So, as we near the turn, you'll likely hear all kinds of suggestions for where the upturn will begin. Preserve your sanity with a little skepticism. I suspect the first to turn will be the ones that have had the best results for a long time. That's precisely why we're so aggressive in our recommendations of companies like Fortune and Constellation. If they are successful in maintaining their records, this type of firm will rise sooner than the rest.
It doesn't matter whether the companies are big or small, techie or traditional. The best companies will start the upward move. Without support from a strengthening economy and a rising market, even these success stories can't rise far. That's why expectations of the broader economy are important. That's where we'll have to wait and see. Expectations should rise now with the ending war (with stock prices and consumer spending following). Expect some good news for a while. Surprises from companies like McDonald's will also provide a boost. Surprises shake people out of expectation ruts. When we've become too negative (or too positive), a shock can wake us up to the change.Let's hope that McDonald's profit boost is a harbinger of things to come.
While the longer term still holds some uncertainty, there is hope. Success is largely a matter of recognizing expectations, and following through when we see an opening. For the moment, at least, there appears to be an opening. We don't know yet what the future holds, but the present looks good.
To send comments or to learn more about Scott Pearson's Investment Advisor Services, visit http://www.valueview.net
Scott Pearson is an investment advisor, writer, editor, instructor, and business leader. As President and Chief Investment Officer of Value View Financial Corp., he offers investment management services to a wide variety of clients. His own newsletter, Investor's Value View, is distributed worldwide and provides general money tips and investment advice to readers both internationally, and in the U.S.
Investing - Google News
This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news
Mutual Fund Returns May Not Be As They Seem!
Arthur Levitt, during his tenure at the SEC, experienced many cases where the non-indexed mutual fund manager bought shares for their own accounts before the fund bought the shares. The fund's purchases drove up the price of the stocks and the fund manager's made a killing on the deal.
Planning for Retirement
Almost without exception, people don't start planning for their retirement early enough in their lives. Young people leaving High School or College and going into their first paid position find it difficult to look or see ahead to age sixty or sixty-five.
Invest To Make Money, Not To Get Rich
The technology boom of the '90s romanticized the "rags-to-riches" ideal that all of us dream about when investing. For those that invested $1000 in Dell at $5 during 1990, held through the seven splits, then sold in March 2000 at $59, the dream was a reality.
Profitability And Stock Turn Rate
The inventory of the typical store represents the largest single element of its total assets. The sale of goods from this inventory is the merchant's chief source of operating profit.
The Conflict of Interest Game
Disgruntled investors are going after Wall Street once again, this time accusing one of investment bank Morgan-Stanley's high-tech mutual funds of making biased stock picks.Recent lawsuits allege the Morgan Stanley Technology fund was influenced to buy and hold stocks of companies that delivered huge investment banking fees - or could potentially bring big business - to the investment bank.
Rules of Simple IRA Your Business Needs to Know
A Savings Incentive Match Plan for Employees plan, better known as a SIMPLE plan, is an IRA-based retirement plan available to employers with fewer than 100 employees.Under a SIMPLE IRA plan, an employee can contribute a portion of his pay to his SIMPLE IRA account.
Waiting 20 Years Can Cost You Millions - Dont Wait Start Today
Many Young people live for Today. They really don't fully understand the power of compound interest.
Which IRA Is Best For You?
An Ira is one of the greatest ways to save on taxes currently and accumulate money for the future.For individuals three types of IRA's will normally come under consideration.
Why Should I Use Penny Shares to Build Wealth?
A strategic question. Why indeed?1.
What If You Absolutely Positively Could Not Lose - Would You Play the Stock Market?
Seniors on fixed incomes face a unique problem. Where dothey invest their savings to get maximum return on investment with limited risk? Some of the traditional places like CDs and Treasury Notes are extremely safe, however the yields tend to be very low.
The Economy Is Not The Stock Market
Several days ago, the Commerce Department reported that May's factory orders had increased by a 2.9 percent.
Remembering TEOTWAWKI and Learning from It
Its only been about 5 years since we had major scares in the marketplace regarding Y2K. You might recall that many computer systems were not programmed to be able to understand the change from 1999 to 2000.
Everyone knows T Rex was the most fearsome of all dinosaurs. He could and did kill everything in his path for food or maybe stupid meanness.
Trading Commodity Futures Using Support and Resistance - Paper Trading
Setting Up a Paper Trading AccountQuestion:I cannot trade with "real money" as yet; however, how do I go about setting up a paper trade account?Answer:You can paper trade various ways and it really does not require that you have anything more specialized than a notebook to track your trades and access to charts.Begin by funding your paper trading account with the amount of money you think you will really begin with, whether it is $2000 or $20,000.
What is an Investor Ready Business Plan
A Business Plan, as all good entrepreneurs starting out in life should know is the foundation, or rather a springboard, towards the establishment and growth of a new business. A business plan is an essential tool for companies raising capital - and your business plan needs to be Investor Ready.
Need To Trade!
You don't HAVE to be trading.As a novice trader, you'll often feel the need to trade.
5 Day Trading Tips for Success
1. How to Treat Gap Openings A gap up or gap down open is an emotional move, and it often will reverse course and turn in to "trap open".
Basic Options Terms
Options are good investing and speculative instruments. But options terminology may confuse even experienced investors.
It's Never too Early to Start Investing!
Remember the old saying, "never too late to start"? Well, try this on for size: when it comes to investing, it's never too early to start. Time really is of the essence here.
Investing In or Owning Drug Lab Properties
Clean Up (includes the insides and the outside of a building)Air out the buildingRemoval of contaminated materials: Carpets, carpet pads, Linoleum, drapes and blinds, air-filters, refrigerators, range, water heater, all tenant clothing and their furniture.Removal needs to be to a site that accepts contaminated product.
MyIdeal Domain Is For Sale - $8,000 For Enquiries eMail Us
© www.MyIdeal.biz - 2012