Mortals can see and benefit from immortal debt, but mortal and immortal debt follows different rules. We mortals can see immortal debt but we must pay our debt, immortals only need to carry their debt! In fact immortals can seemingly carry debt forward forever. That substantially changes how each can behave and use debt well.
Investing confidence: At times choppy market behavior and volatility can worry a new investor. By watching three big factors economic growth, no tapering and no Fed tightening, investing looks good. Investors can be reassured and confident further gains are coming despite a dip due to tax loss selling and premature tapering talk.
Part 4 of 4: White Top View, Market Direction series. Yesterday we began our discussion of five key stock market direction pointers. Today we conclude that discussion. Digging deeper into economic data can refine the results but there is little practical reason to do so. The basic approach works well. Trending up produces a rising stock market; tending down produces a falling stock market. When the trend is up, confidently take stock positions. Go long by buying shares. Purchase stocks that benefit most from economic growth. If the trend is down, get out of the market by selling stock positions and going to cash. Alternately in a down market, sell short to profit from falling stock prices.
Part 3 of 4: White Top View, Market Direction series. Get a fast read on the most likely stock market direction. Some easy observations and a few simple questions can give you a reliable and useful indication of stock market direction. Among your contacts, neighbors, friends and family, observe and ask questions on the five following points: Careers advancing or are jobs being lost? People concerned or confident about employment? New cars being bought or old cars repaired? Houses being purchased and renovations made? More people upsizing or downsizing? You can spend weeks delving deeply into economic reports or listening to the droning and arguing of pundits, experts and politicians. Or use this simple alternative approach which works very well.
Part 2 of 4: White Top View, Market Direction series. Investors use data to look forward, typically about 6 months. While not strictly a prediction, it expresses near term expectations of economic direction. That so called predictive function can strongly suggest the most probable future. That can tip us off to both opportunity or danger in the markets. We can use it as either or both a big money-maker or capital saver! The desire to know the future direction motivates much research. Seeking, compiling, identifying and reporting indicators keeps many people busy.
Part 1 of 4 in the White Top View, Market Direction series. The market has a predictive function, the trend is your friend, Up, go long, down go short or get out. Use those three stock market guidelines rather than endless expert reports. The market looks about 6 months ahead anticipating where the economy will be going during the next two quarters. Identify that trend, up or down and take positions that benefit from that direction. When the trend is up, play long. When the trend is down, play short or get out.
3 Times yes or investors say no! The economy, market and company must all say yes or we answer no! White Top View series: Playing Market Odds, discusses how superior investors play market odds and avoid common investment errors. This Part 3 of the series, covers how superior investors wait for three positive signals before investing. Before investing we research the facts on the economy as well as the market and company. The economy, market and the company information must all give positive signals or we say no to investing.
3 more small investor advantages, part 2 of the Small Investor Advantage series. Advantages include the edge in liquidity, playing the stock market pecking order and new investment opportunities, all unavailable to large accounts. Investors can play the smaller end of the market for big profits. Be aware, those big profits get earned by taking risks. Unless you know what you are doing, stay away! The payoff is big for investors with knowledge and experience. You can learn this end of the market. But doing so takes time and much effort. Triflers and gamblers regularly lose playing here, knowledge and experience wins most often.
Small investor advantages Warren Buffett knows. Warren Buffett tells us that small investors have a growth advantage over huge investment accounts. This post discusses how that can be. When you or Warren Buffett are considering an investment opportunity, the opportunity must have the potential to make a difference to your portfolio. The advantages include, 1. Returns make a big difference, 2. Oh yes! Size matters! 3. Faster growth numbers, 4. Liquidity advantage, 5. Playing the pecking order, 6.New listings and startups. 1st of 2 parts.
Anyone can develop the 4 Traits of successful investors: they learn and know investing. They pay attention, use an investment plan, are prepared to decide and act quickly and proactively as needed. They know both investing and markets while remaining attentive to both their holdings and the markets. By paying attention and planning ahead, they can decide quickly and act promptly and proactively as needed. That dependably produces their superior returns while they build greater financial security. You can make the choice of becoming a superior investor.