Past events show that the market encounters crises, such as the bursting of the technology and telecom bubble in 2000’s and 9/11. These crises create fear and uncertainty but only for a short period. The market crashes but recovers and continues to move on. The long term trend has remained upward. The market has grown […]
Archives for August 2014
Investing Tip #122: Ignore Short Term Predictions
If you are a long term investor, your investment decisions should not be guided by short term forecasts. It is very difficult to predict tomorrow’s market. Stick with your chosen investment strategy and ignore short term predictions. If you want to learn more check out the following resources: What Do You Tell the Successful Stock […]
PC Forecast Improved – Is Microsoft a Buy?
Microsoft (NASDAQ: MSFT) continues to make changes at the organization and there have been some positive trends. The stock is up over 35% over the past year and we have written positively about it before here. However, there are increasing concerns that upside is limited and challenges remain. First, declines in PC sales have hurt […]
Investing Tip #121: Start Investing for Retirement Now
Normally you wouldn’t think about retirement when you’ve just started earning an income. But if you start early, the effects of compounding can be huge. By planning and investing early for retirement, you allow your investments more time to grow. Your savings will grow with the power of compounding. The sooner you start investing for […]
The Riskiest Investments You Can Make
Investing is a game that involves balancing the risk and reward of the thing you’re investing it. However, there are some investments that are much riskier than others. And these are investments that you should really think carefully about before jumping in. Because, even though they’re risky, when they do yield rewards, the rewards are […]
Investing Tip #120: A Stock at a 52-week Low is Not Necessarily a Bargain Buy
A stock at a 52-week low not is not necessarily cheap and you shouldn’t automatically add it to your portfolio. Buy a stock only if it qualifies criteria set under your investing strategy. Invest only if the company’s fundamentals are intact. Hefty discounts do not mean a good buy. If you want to learn more check […]
Investing Tip #119: Sell a Loser
Peter Lynch says, “In this investing business, if you’re good, you’re right six times out of 10. You’re never going to be right nine times out of 10.” Recognizing your losers is hard because it’s also an acknowledgment of your mistake. But be honest when you realize that a stock is not performing as well […]
Do You Want to Invest in Future Business Leaders? Prodigy Finance Can Help.
Do you want to invest in future business leaders? Dumb question. Who wouldn’t? As you may have noticed the Peer to Peer lending industry is exploding. (Need proof? Read this, this, and this.) And now that these niche markets have emerged you have the opportunity to invest in just about any type of person you can […]
Investing Tip #118: Keep the Winners
Do not sell stocks after they have increased by a certain percentage. Instead, keep your top performing stocks forever. Peter Lynch says much of his overall success was due to a small number of stocks in his portfolio that returned big. If you want to learn more check out these resources: Investing for Millennials The Neatest […]
The Easiest Way To Find Great Companies To Invest In
Thinking and finding companies to invest in can be hard. That’s why I wanted to share with you the best way to find great companies that you can invest in right now. It doesn’t require diligent research; it doesn’t require vast investment knowledge; and it doesn’t require any special skills. All it requires is a […]
Investing Tip #117: Park Money in Money Market Mutual Funds
Money market mutual funds are an open-end mutual fund which invests only in money markets securities and other short-term securities, usually of less than 30 days maturity. They are very liquid and provide good returns. If you want to learn more check out these resources: Comparing Stocks, ETFs, and Mutual Funds The Trouble with Target Date […]
Investing in Yourself: Start an Emergency Fund
We recently asked “What Do You Consider a Financial Disaster?” It is an incredibly personal question and one that some of us really don’t want to think about. We are all working so hard to be financially smart and responsible. We don’t want to think about something wiping us out! I wonder, though, if for many […]
Investing Tip #116: Ignore Short Term Movements
Don’t panic when your investments show short-term downside movements. When tracking the activities of your investments, you should look at the big picture. Remember to be confident in the quality of your investments rather than nervous about the inevitable volatility of the short term. If you want to learn more check out these resources: Cash […]
Investing Tip #115: Low P/E Does Not Mean Undervalued Stock
P/E ratio is a common measure of how the market currently values the firm’s earnings. It is a ratio between market price per equity share and earnings per share. But a low P/E ratio doesn’t necessarily mean a stock is undervalued, nor does a high P/E ratio necessarily mean the stock is overvalued. Look at […]
Investing Tip #114: Minimize Investing in 457 Plans
Though 457 Plans are similar to 403(k) and 403(b) plans, the contributions under 457 plans get mixed up with the organization’s fund. These are not kept separate. If the company faces a financial crunch, your retirement fund would be at risk. Protect yourself and minimize investing in 457 plans. If you want to learn more […]
Five-Stocks Related to Global Sustainablity Issues
Morgan Stanley Research issued five “sustainability picks” earlier this month for investors. The stock picks are all companies that can benefit from the large long-term risks in the global market. The big risks were listed as climate change, water scarcity, vast urban waste, food insecurity, public heath burdens, economic inequality, and demographic cliffs. These risks […]
Investing Tip #113: Use a 403(b) for Your Retirement Plan
If you are working for a non-profit organization such as educational institution, church and charitable organization, use 403(b) plan for retirement savings. This is similar to a 401(k) plan. Put the maximum savings allowed into a tax-deferred investment account. Allocate money in your plan depending on the amount of risk you wish to expose your […]
Weird Stock Market Indicators
There are a lot of odd hypotheses and weird indicators when it comes to stock market performance over time. I thought it would be fun to share a few that have actually been pretty successful over time (there are, of course, thousands of others that are not as successful). Who knows, maybe there is some […]
Investing Tip #112: Use a 401(k) for Your Retirement Plan
If you are working for a profit organization, use a 401(k) plan for retirement savings. Put the maximum savings allowed into a tax-deferred investment account. Be sure to contribute enough money to get the employer match if offered by your company. Allocate the money in your retirement plan depending on the amount of risk you are […]
Upstart P2P Lending: Is It a Good Option?
Peer to peer lending has revolutionized the traditional loan process. Instead of being tied to a bank for loans you can now turn to regular people to help you get the funding you need. Peer to peer lending is also helping the everyday investor diversify their portfolio and earn high interest in the process. With […]
Investing Tip #111: Don’t Buy Penny Stocks
You can accumulate a large number of penny stocks paying only a few dollars. But in investing, it is the quality and not quantity that matters. There is also a common misconception that there is less to lose in buying a low-priced stock and investment can multiply quickly. But in reality penny stocks carry more […]
The New Trend In Automated Savings: Auto-Escalation
When signing up for benefits this year, you may notice something different when it comes to your 401k contribution – opt-out auto-escalation. Confused? It’s the idea that employees need to decide NOT to join the 401k and NOT to increase contributions each year, rather than opt in. When enrolling in your benefits, you’ll notice something similar […]