At times choppy market behavior and volatility can worry a new investor. Watching three big factors can reassure an investor and give investing confidence.
Investing confidence
Three factors give investing confidence markets are going higher:
First, economic growth trends are up and continue to improve,
Second, tapering is many months off and,
Third, Fed tightening …
… a strength but offers little or no growth. I resist changing these holdings until convinced there is a weak or under performer. They get sold.
At times economic events or developments change the outlook and may need adjustments to positions and sizes. These accounts undergo fewer changes than the growth portfolios that I manage.
Managing …
… there is no good reason why the stock price dropped. Ask questions and get answers.
Have earnings changed? How about the growth prospects? Any change in management, economic conditions, pending business? Have business operation or the outlook changed? Do we have a great company in an awful industry? Or does this look like a good …
… Series, Basic Numbers as an introductory overview to understanding financial statements.
Share: Cash flow money goes!
Investors look forward with data and often see repeating patterns in economic data.
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… available. You can deal with each issue and make the changed that give you absolute control of your financial future.
Academic fields called behavioral finance or behavioral economics study such issues. Here we are not concerned with academic precision. Rather we need problem identification and practical solutions.
We want to do more than just cope …
… industrial world. It grew to become the biggest stock exchange anywhere. Today, it continues to dominate North America and leads the markets of the world.
Over time, economies, technologies and services all progressed well beyond the original base of mighty industrial companies. Now a broad spectrum of the largest players of all types and every …
… that matches your risk appetite is important.
Research
Stock market success hinges on diligent research. Traders must understand the stock market and analyze individual companies, sectors, and economic trends. They must employ both fundamental analysis, which scrutinizes financial statements and earnings reports, and technical analysis, which studies price charts and trading volume. A well-informed …