I look at the charts in your 401k plan continuously. If none of the charts are going up, here is our plan: we stay on the sidelines. Pretty simple.
Point and Figure Charts May Disagree With Experts On Stocks
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Stock Market Mistakes : Buying Fannie Mae and Freddie Mac
A client called me today, curious about buying shares of Fannie Mae and Freddie Mac. He said, "I'm sitting at home, watching the stock market channel and I'm amazed. I am seeing all of the shares of Fannie Mae and Freddie Mac changing hands. The stock prices are so...
Listen to the Sell Signal: Are Media Darlings Worth It?
I'm going to paint a word picture for you. Suppose you own a stock that gave three successive buy signals last summer -- in 2007. The stock ran from $28 per share up to $34 a share. Sounds good so far, right? But the stock then broke through the support line, was...
Your Stock Investment Can Always Go Lower, Just Ask Merck
This article could be titled: Can (fill in the blank) go any lower? I'm not picking on Merck. The reality is you could drop in Merck, Citibank, General Motors, Ford, J.P. Morgan, along with most other names in the Dow Jones Industrial Average (and most of the largest...
The Stock Market : Can We Trust the Crowd?
Do you remember the television program, "Who wants to be a Millionaire"?The show was actually featured in a terrific book "The Wisdom of Crowds" by James Suriowiecki. If you remember, the contestants were given three "lifelines" to help them. The first lifeline was...
Value of Bonds : Goldman Stearns and Lehman Sachs
All these firms hold the same investments. There is STILL considerable risk in the group. Why did this happen to just Bear Stearns? One of the first things I learned about investments was when it comes to bonds, think chocolate and vanilla, super simple: when interest...
Relative Strength is One of the Better Tools
One of Our Better Tools We've got a tool we rely on here at Mullooly Asset Management called "relative strength." This tool simply tells us which investments are moving faster than the entire market, or moving slower than the entire market. Pretty powerful tool!...
Relative Strength Can Help You Beat The Market
One of the best tools we have at our disposal is something called "relative strength." Look, you can't beat the market, unless the investments you own ARE beating the market. In other words, hanging onto something "just because" will always drag down your overall...
How Does the Discount Rate Being Cut Effect Investors?
On Friday, the Federal Reserve cut the discount rate by a 1/2 pt. They cut the discount rate -- NOT the Fed Funds rate. Understand, the discount rate is the rate banks and brokers are charged to borrow from the Fed. This doesn't change rates you and I are charged. The...
When to buy, When to sell in the stock market?
Hanging onto a stock because your broker says "it's a good value" doesn't help when you're losing money, right? Look, much ink has been spilled lately about the stock market. First, everyone was slapping themselves on the back about the market reaching 14,000. Almost...
