Volatile markets are great for the day traders. They offer great opportunities to make money, but as a trader you have to be watching the market movements on a minute by minute basis. Not everyone has the time or the risk tolerance to invest this way. Sometimes it’s better to play things safe during highly uncertain times.
Truth or Fiction
Markets move based on news, true or not. When the news isn’t true or isn’t decisive the markets tend to move more because of the uncertainty. Uncertainty leads to speculation, speculation leads to higher volatility which leads to an aggressive intake of pepto-bismol, tums or any number of vices to calm your nerves.
We have recently seen the market uncertainty due to political unrest in the middle east, and the natural disaster and nuclear uncertainty in Japan. The news headlines start to control the markets reactions to how things are viewed. Continue Reading…
Some people call it research, others analysis, maybe its due diligence, and even worse, homework. It’s certainly not fun, can be overly time consuming, but with investing it’s an absolute must or it will cost you.
When you see market corrections or moves like we have the past few days, things have a tendency to look more ominous than they really are. The markets don’t like uncertainty and that is exactly what they’re getting. With uncertainty you get high price fluctuations in stocks, bonds, and commodities, which is great for traders but tough to watch for the average investor.
As far as retirement plans go, the 401(k) has become one of the most popular choices available. It’s low cost, easy set up and wide range of investment possibilities have made it a viable option for both large and small businesses. It has also put the sole responsibility of saving for retirement squarely on the shoulders of the employees.
If you currently have investments in mutual funds and want more control over your money without having to get into the tedious analysis of individual stocks or bonds, ETFs may be right for you. ETFs have been growing in popularity and numbers over the past few years due largely to their unique advantages over mutual funds and diversification opportunities they present.
The Super Bowl is by far the best major sporting event, as far as I’m concerned. Though I’d rather have a different NFC North team playing, this years game shouldn’t disappoint. The good news is that you don’t have to root for either team if you plan on making money in the stock market, so says the Super Bowl Indicator. The Steelers however could bring about the best possible returns.