Financial Planning

Have you heard this saying before?  So have you done so?  The idea is that most gains in the equity markets are made between November and April.  As for me I have taken up less position in Equities.  I am still long on some blue chips but my total investment in equities has drop because I have get out of some counters.

Wall Street closed out a fifth week of losses with more selling on Friday after an anemic jobs report strengthened the case that the economy was slowing. The government’s payrolls report showed 54,000 jobs added in May, the weakest reading since September, while the U.S. unemployment rate rose to 9.1 percent from 9 percent in April.

“Our view is that we’re clearly seeing a slowdown, but you’d need a shock to the system to see things get much worse from here,” said Andrew Goldberg, market strategist at J.P. Morgan Funds in New York. “There’s little room for error, but there are reasons to expect growth, and we don’t see a whole heck of a lot more downside.”

However, stocks are still are positive for the year, with the Dow up 5 percent, the S&P 500 up 3.4 percent and the Nasdaq up 3 percent.

Wonder why when the market goes through a correction, many people do not invest.  Warren Buffett says, “be fearful when others are greedy and be greedy when others are fearful”.  We need to get into the right investing mindset to be ready to take these opportunities.  Remember when the market is down as a result of the subprime crisis, Berkshire Hathaway Inc. (Buffett investment company) bought Burlington Northern Santa Fe Corp.  By now this investment has made a handsome return for Berkshire.

It is not easy to have a trained mindset and to be ready when the opportunities knock.  We have to be educated and psychologically ready when the event happens.  We must be ready to overcome the fear of investing in a down market.  Ultimately what goes down will come up.  Are you ready?

It is only in a crisis that real pearls and diamonds emerged.  Companies that can stand the slow down in the economy, will be able to take advantage of the impending recovery.  During this economic crisis, companies that are diamonds and pearls are selling at a bargain.  It is for the serious investors to take advantage of the value by investing into these companies.  As they say, every cloud has its silver lining.  Once the storm is over, these jewels will be revalue upwards and investor with patience and courage to take action now will benefit most from it.  This is how smart investors make the most money from every crisis.  For those who do not have the knowledge to pick these diamonds and pearls, let the professional handle them.  Just invest in top unit trust funds with a good record and let the fund managers do the job.   I am sure in three years time you shall be happily rewarded.

Do not let this opportunity slip away.  Do not be like those who are so ignorant that they do not even know what happened when smart investors are laughing to the bank.  The time is now! Happy investing!

To be able to make money in stock, one has to be educated.  Financial knowledge in terms of fundamental analysis and technical analysis is a must.  I am a strong believer of both.  One without the other would increase the chances of failure in this game.

90% of the investors make money investing in stock.  Wrong!  It is 90% of the investors lost money in stock investment.  Most of the investors put money in a stock without doing the proper due diligence.  A proper due diligence requires knowledge, time and money.  Knowledge to analyze the stocks.  Time and effort must be put in for detail analysis.  Money is required to acquire information and facts.  So to be a winning investor is not easy.  If you are not ready to put in these three ingredients into selecting a stock to invest, I would advise you to leave the money in the bank.

Definitely, Hope is not the answer.