Lights of the Stock Market

There are red lights, green lights, blue lights and spot lights. There are orange lights, pink light and flash lights. There are search lights and micro lights. And the one you must obey is the stop light.

If you don't stop when the light is red you could easily have an accident and lose everything you have, even your life. These different types of lights alert us to possibilities and dangers. Is there a light that goes on that tells us whether the stock market is going up or down; one that is green to invest or red to sell? They aren't very obvious, but they are out there. You only need to become aware and learn when the signal flashes.

It doesn't take long to learn to drive an automobile, but it does require much more skill to handle an 18-wheeler. The professional driver has taken to time to learn his profession. He knows what all the lights mean. Not only the red and green, but the yellow and blue as well. There are also many light signals inside the cab that he must be aware of all the time if he is to have a safe passage.

Stock market signals may not be red or green or any color at all, but they are there and are obvious to one who wants to learn. The one who wants to learn is the investor who wants to protect his capital from loss and to make enough money to retire in a comfortable life style.

The most obvious signal is the 200-day moving average. You can find one of the best market signals printed every day in the Investor's Business Daily Mutual Fund Index. When the index is above the 200MA line you are in the green and should to be invested. When it is below the 200MA line you the red light is on and you want to be in a money market fund. When those signals flash and you learn to act you will become very wealthy over the next 10 to 20 years. You will not lose your money when the market is going down.

It you take the time to go back in history, say 20 years and treat the S&P500 Index as a dollar value you will quickly see that buying and selling on this simple method would have made you a ton of money. No, there is not very much trading involved. You will only be buying or selling about once each year. It will not take much of your time and you will sleep better, especially when the market is crashing and your money is safely tucked away.

Currently the green signal is on to be invested according to the IBD Mutual Fund Index. The red signal will come on that tells you it is time to sell when the index plunges below the 200MA line. Pay attention to the signals. You don't want to lose everything.

Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make money and keep their profits with his simple 2-step method. Read the first chapter at http://www.mutualfundmagic.com and discover why he's the man that Wall Street does not want you to know. Copyright 2005.

In The News:

When should you sell your mutual fund schemes? - Stocks and equity mutual funds are different  Economic TimesInvesting in an individual stock and equity mutual fund scheme is different. You must look at various parameters like key ratios while investing in a stock. Hence ...
Why HDFC Bank stock is among the top picks of mutual funds  Business TodayPrivate sector lender HDFC Bank, the third-largest Indian firm by market capitalisation, is among the favourite stocks in the portfolios of mutual funds. Despite ...
Should you shift from large-cap mutual funds to index funds?  Economic TimesThe index fund category of mutual fund schemes is slowly gaining traction among investors. The fortunes of index funds are changing as not only are they being ...
How your mutual funds played the balancing act during stocks crash  Economic TimesAs with market cap allocations, equity funds seem to be maintaining their sectoral exposures.
Sebi unveils paper on pricing of corporate bonds  Economic TimesMumbai: The Securities and Exchange Board of India will also soon come out with a consultation paper on uniform valuation methodology for pricing of ...
Sebi in talks with industry on mutual funds norms  Economic TimesMUMBAI: India's market regulator is in talks with industry to deal with fears of contagion effect on mutual funds due to a liquidity crisis faced by the country's ...
How diversified should a mutual fund be?  LivemintThe extent of diversification is driven by the mutual fund's strategy and the market segment it invests in.
MFs, PMS may take part in commodities derivatives market  Economic TimesMutual funds and portfolio management services (PMS) are likely to be allowed to participate in the domestic commodities derivatives market. The Securities ...
Mutual Funds For First Time Manage More Money In Stocks Than Insurers  BloombergQuintMutual funds for the first time manage more money in equities than insurers as the last stock rout erased the gap that started narrowing after demonetisation.
See how they play market crash! MFs sold other stocks to lap up these 21 in October mayhem  Economic TimesPopular beaten-down stocks attracted big money from institutional investors on Dalal Street in October, when the domestic equity market was facing severe ...
Kotak Mutual Fund is betting on these 5 sectors in 2019  Moneycontrol.comWhile current valuations are not cheap, the fund house expects a further pick-up in earnings.
We need more capital formation and a broader investible universe: Vikram Limaye, NSE  Economic TimesYou need to educate the common man about the products available & associated risks, says Limaye.
Hot and Cold Stocks of Mutual Funds in October 2018  MoneylifeIn October 2018, Axis Bank and ICICI Bank were the most preferred stocks of Indian mutual funds. The net purchases of Axis Bank were Rs1,504 crore, of which ...
Union MF's Vinay Paharia: We're overweight on IT, energy stocks; underweight on financials  Moneycontrol.comThe rupee's depreciation against the US dollar has improved the business outlook for the information technology sector making it a favoured bet for most fund ...
Are smart beta mutual funds better than large-cap MFs?  Economic TimesSmart beta funds seeks to enhance returns from the base index by buying a larger proportion of stocks compared to their share in the underlying index.
FIIs, MFs bet on 138 stocks in last 1 year; should you buy?  Moneycontrol.comOut of the 138 stocks which witnessed increase in weightage on a year-on-year basis, as many as 14 stocks saw a correction of 20-80 percent in the last 1 year.
Staggered approach best way to invest in equity mutual funds: Analysts  Economic TimesWith the elections round the corner, wealth managers believe investors should use a staggered approach to invest in equity mutual funds with a large-cap bias.
Mutual funds garner Rs 7,985 crore via SIPs in November  Economic TimesNEW DELHI: Retail investors continued to pour money in mutual fundS through systematic investment plans (SIPs) as the industry received Rs 7,985 crore via ...
Stocks bleed as mutual funds lead sell-off  DAWN.comKARACHI: The outgoing week turned out worst weekly performance in 67 weeks as the market saw blood on the street on most trading days. The KSE-100 index ...
The Forbes Fund Grading System  ForbesWhich stock funds are bull market winners? Which are bear-market survivors? Maybe a fund that has caught your eye sports an especially good long-term ...
ICICI Prudential Mutual Fund stops fresh flows into key dividend plan  Economic TimesMUMBAI: ICICI Prudential Mutual Fund has discontinued *fresh* investments in the monthly dividend option of its largest scheme — ICICI Prudential Balanced ...
Investors flee bonds, stocks in turbulent week for growth, trade  Moneycontrol.comBut investors were continuing to edge back into emerging market stocks, which saw their eighth week of inflows with $2.7 billion.
Is your mutual fund portfolio really diversified?  Moneycontrol.comIf your portfolio consists of equity funds which have similar stock holdings, then it amounts to just duplication and may negate the positive effects of ...
YES Bank promoters prepay Rs 400 crore loans to Mutual Fund firms: Sources  Economic TimesYes Bank promoter companies today prepaid Rs 400 crore of non-convertible debentures (NCDs) held by two mutual funds. According to ET Now, the promoters ...
Top 6 stocks where MFs, FIIs increased stakes in past 3 quarters  Moneycontrol.comSonata Software, JM Financial and Lumax Industries are some of the names that foreign institutional investors and mutual fund houses have incrementally ...
Fund managers' bets: Top 10 large, mid and small-cap stocks that MFs bought in October  Moneycontrol.comMF industry assets grew to Rs 22.2 lakh crore on the back of improved inflows into equity-oriented and liquid funds.
Understanding, Benefiting from Mutual Funds  THISDAY NewspapersGoddy Egene writes on the benefits of investing in the capital market through mutual funds. The stock market is heading for negative close this year after a ...
Leveling the Playing Field for Investors: Interactive Brokers Integrates New Constructs Research  ForbesLess than a month after my firm's TD Ameritrade integration, clients of Interactive Brokers have access to New Constructs reports and ratings on over 10,000 ...
Sharp swings in Sensex: Here are 5 things you should avoid  Economic TimesThe Sensex dropped more than 500 points in the Tuesday morning trade but as the day progressed it climbed back up and again dropped. Some of the factors ...
AQR Strips ‘Risk Parity’ Name From Mutual Fund After Redemptions  BloombergQuint(Bloomberg) -- AQR Capital Management's flagship risk parity mutual fund, which has suffered big outflows, will no longer be billed as a risk parity fund.
Why liquidity offered by mutual funds is good for you  Moneycontrol.comYou may come across emergencies which warrant sudden requirement of cash. In such a situation, mutual funds come in handy.
Stock Market Forecast: Dividend Stocks To Fight Volatility  Investor's Business DailyThe broad stock market gained 2.04% last month. Still, the stock market forecast by fund managers is for more volatility going forward.
Picking the best mutual fund: Are past returns relevant after re-categorisation?  Moneycontrol.comWhile selecting a scheme for investment or while deciding whether to continue with a current investment, a fund's performance track record does play a critical ...
Explained: What is an equity diversified fund and what makes it different?  LivemintAn equity diversified mutual fund is any equity fund which invests across different industries and sectors.
Stock Market Distress Signal: How Low-Cost Index Funds Are Taking Over  WBURSounding the alarm on index funds. How their runaway success has reshaped power and accountability in boardrooms and on Wall Street.
Invest in stocks in run-up to 2019 general elections to profit from volatility: FundsIndia  LivemintInvesting five to six months before the elections in 2009 and 2014 earned an average 3% to 6% more than the Indian benchmark return in the five-year period to ...
Fidelity Investments Retirement Expert Offers Tip On How Invest In Mutual Funds For Income  Investor's Business DailyFidelity Investments' retirement expert Ken Hevert offers tips on how to use mutual funds to generate a steady flow of income.
U.S.-Stock Funds Seek Another ‘Up’ Year, but It Will Be Close  Wall Street JournalMonthly Monitor: An average total return of 1.7% for U.S.-stock mutual funds and exchange-traded funds in November puts the year-to-date rise at a paltry 1.6%.
Week-Long Carnage in Bank Stocks Is Now Worst Slide of Trump Era  BloombergIt's tough all around the market, but in few places is the pain more pronounced than bank stocks. Signs of muted loan growth and concern the economy will ...
Insurance sector finds favour with analysts: Should you buy these stocks?  Economic TimesPerformance and financial situations of insurance firms have improved steadily, which explains why analysts are convinced about their long-term potential.
Buying frenzy: 10 stocks where foreign investors poured in maximum funds in Q2  Moneycontrol.comFPI increased stake by more than 1 percent in 30 companies out of BSE 200 including 10 stocks wherein they upped shareholding by 2.5-10.4 percent in ...
Stocks in the news: Sun Pharma, Ceinsys Tech, VST Tillers, NCC, Uflex, Ramky Infra  Moneycontrol.comInfibeam Avenues | Omax Autos | Sun Pharma | Ceinsys Tech | VST Tillers Tractors | Gravity (India) and NCC are stocks which are in the news today.
401(k): How does the stock market drop affect my retirement savings?  USA TODAY401(k) retirement plans are taking a hit from the stock market drop. Declines are steeper for all-stock portfolios.
Fed Up With Your Bank? These 7 Options Will Make You Much More Money  ForbesIs your bank still paying you pennies on the dollar on your savings accounts? Here are 7 bank alternatives which will pay you much more.
ETMarkets Weekend Podcast: Which mutual fund to pick now: Largecap, midcap, multicap or smallcap?  Economic TimesTune in to know what industry veteran Sunil Singhania has to say about picking mutual funds.
Rising volatility is slowing outflows from stock pickers’ funds: Goldman Sachs  MarketWatchMutual fund outflows are on pace for their lowest rate since 2014.
A New Wrinkle In The U.S.-China Trade Dispute  ForbesLast week global stocks plunged on concerns that trade negotiations between the U.S. and China are not running as smoothly as initially thought. The S&P 500 ...
The Mutual Fund Show: This Asset Manager Topped Crisil’s Ranking And How…  BloombergQuintBased on the performance of asset managers, Crisil ranked 462 funds as of September. Of this, 200 are equity funds, 214 are debt and 48 are hybrid.
Horses for courses: 2 mutual fund portfolios depending on your favourite for Lok Sabha polls  Moneycontrol.comYou could simply go ahead and invest in good quality funds or if you have a strong view on the outcome of the elections, then you can invest in an 'Election ...
The 5 Best Investments You Can Make in 2019  Kiplinger's Personal FinanceGood riddance, 2018! These are the five best investments you can make in 2019 to recover from last year's nauseating roller-coaster market.
5 strategies to adopt while choosing which mutual fund categories to invest  Moneycontrol.comThe decision regarding mutual fund category to invest in would primarily depend upon the investor's risk tolerance and investment horizon.
Closing Bell: Sensex closes over 100 points lower, Nifty below 10,900; IT stocks gain  Moneycontrol.comAt the close of market hours, the Sensex closed down 106.69 points or 0.29% at 36134.31, while the Nifty was lower by 14.30 points or 0.13% at 10869.50.
Investors move HC on Elcid stock-price issue  Economic TimesSeveral buyers are willing to buy shares in Elcid but no seller is willing to sell due to the vast disparity in real and market price.
Stocks in the News: Investors Keen on Starbucks Corporation (NASDAQ:SBUX) as it Makes Waves With Moves  The Coin GuildMajor market players are buzzing over Starbucks Corporation (NASDAQ:SBUX) as their share price hit $65.47 at the end of the most recent trading session.
Stocks in the News: Investors Taking a Second Look at Altra Industrial Motion Corp. (NASDAQ:AIMC) After Recent Market Moves  The Coin GuildMajor market players are buzzing over Altra Industrial Motion Corp. (NASDAQ:AIMC) as their share price hit $27.33 at the end of the most recent trading session.
An ETF Retirement Portfolio for 2019  Zacks.comThese ETF strategies could be useful for a retirement portfolio for 2019.
Physical shares turn 'illiquid' after 5 Dec; 4% of Sensex scrips still in non-demat form  Economic TimesThe capital market regulator's deadline for transferring shares in physical form is just around the corner. After December 5, physical shares will need to be ...
IDFC Tax Advantage (ELSS) Fund - Regular Plan NAV: IDFC Tax Advantage (ELSS) Fund - Regular Plan-Growth Equity Factsheet  Economic TimesObjective: The scheme seeks to build a diversified portfolio comprising of stocks of companies with strong fundamentals that are available at reasonable ...
3 Top-Ranked Short-Term Government Bond Mutual Funds  NasdaqA short-term government bond fund is a mutual fund that's limited by its investment objectives and fund bylaws to investing primarily in short-term.
Is your mutual fund scheme holding too much cash?  LivemintEvery mutual fund scheme comes with a mandate to invest in certain type of securities, but it is allowed to have a small part of its portfolio in cash to meet ...
3 Ways to Reduce Risk in a Portfolio  Morningstar.comHere are some defensive investments to consider in this volatile market.
Why stopping mutual fund SIPs when stock market falls can jeopardise your financial goals  Economic TimesFear has returned to Dalal Street. Caught in a perfect storm of weak macroeconomic numbers, the IL&FS crisis and fear of more defaults, equity markets have ...
Fund managers ready to go shopping after sharp correction in stocks  Moneycontrol.comMutual funds that were holding around 8-10 percent cash level in their equity portfolio are likely to purchase shares of companies in banking and financial ...
New stock ideas boost equity mutual fund portfolios  LivemintIt is imperative for mutual fund houses to beef up their research capabilities, to be able to identify more winning new ideas.
7 stocks most favoured by mutual funds over last one year  Economic TimesAs the markets hit a speed bump, stocks favoured by mutual funds appear to be safer bets.
Five stocks that mutual funds think can outperform  Economic TimesA volatile month gave fund managers a chance to cherry-pick stocks.
Is your mutual fund buying or selling stocks too much?  LivemintA mutual fund scheme's turnover ratio tells you how frequently its fund manager buys and sells the underlying stocks. Typically, higher the turnover ratio, more ...
Mutual funds' exposure to banks hits 3-month low of Rs 1.88 lakh crore in Sept  Economic TimesMutual funds' holding of banking stocks declined by over Rs 21,600 crore to Rs 1.88 lakh crore in September, driven by the correction in equity markets.
Small- and mid-cap mutual funds open doors again, but should you invest?  LivemintL&T Emerging Businesses Fund and DSP Small Cap Fund have allowed *fresh* mutual fund investments, taking advantage of a continued correction in small- ...
Shall I buy the HDFC AMC stock or mutual fund?  LivemintThe risk of putting all our money in a few stocks is much higher than investing in mutual funds.
Investing in equity mutual funds versus investing in shares: Which is better?  Economic TimesThe final goal for all stock investors is the same: to get superior returns. However, in terms of what you do, there are two completely different routes.
Value focussed MF are cutting their exposure to Indian stocks. What about you?  Moneycontrol.comAs valuations climb, the funds have chosen to stay light on Indian stocks and exposure to bonds and arbitrage has gone up.
Is it a good time to invest in small-cap mutual fund schemes?  Economic TimesDespite the slide in the Nifty Smallcap100 index, fund houses seem to be placing faith in small-cap funds again. Should investors take the cue?
Mutual funds that destroyed most investor wealth in the September selloff  Economic TimesThe recent selloff in the stock market has raised fears of a rush for redemption in mutual funds.​
Why your mutual fund earned you less than Nifty in recent market rally  Economic TimesThe more the number of stocks in an index, the weaker is its performance.
Mutual fund holdings in IT stocks touch all-time high  Economic TimesMumbai: Fund managers are betting big on the IT sector, on the back of an improving global macro environment, depreciating rupee and rise in IT spends.
Mutual fund managers bought & sold these 20 stocks in May  Moneycontrol.comRelative valuations are attractive and around average, but midcap valuations are still looking stretched despite the recent drawdown, Morgan Stanley said in a ...
Investing in stocks needs deep understanding of markets  LivemintDirect investing into individual stocks requires deep understanding of the markets and continuous involvement into investing.
Are mid and small-cap mutual funds holding too many illiquid stocks?  Economic TimesLiquidity has been scarce in Indian capital markets in recent weeks. Mutual funds have also not been spared the pain, with liquid and money market funds ...
How stocks picked by mutual funds over 2014 to 2017 have performed  Economic TimesWhile the most wanted stocks of 2014 and 2015 have done well, the recent picks have disappointed.
Investing in mutual funds? Diversify to reduce risks and enhance returns  Moneycontrol.comIn the worst of the times for stock markets, individuals invested across the asset classes are less hit as compared to investors betting all their money on stocks.
Four Strategies For Managing A Portfolio Of Mutual Funds  InvestopediaNow that you've built your portfolio of mutual funds, you need to know how to maintain it. Let's talk about how to manage a mutual-fund portfolio by reviewing four ...
Bleeding mutual funds: Should you go back to good old fixed deposits?  Moneycontrol.comAre you worried about the losses on your investments in mutual fund schemes? You are not alone. There are many investors who dumped their good old fixed ...
Top stocks bought and sold by mutual funds in June 2018  IndiainfolineInvestors should focus on longevity to create wealth. We advise investors to stay invested in those stocks whose growth story is still intact.
HDFC AMC, Reliance Nippon stocks fall over 9% after Sebi caps expense ratio of mutual funds  Business TodayThe stocks of asset management companies (AMCs) fell in trade today on fears of lower revenues after market regulator Sebi capped expense ratio for mutual ...
Domestic mutual funds are selling these smallcaps and midcaps in hordes. Check out why  Economic TimesNEW DELHI: And you thought midcaps and smallcaps have been under pressure over the past three months because of the Sebi reclassification, requiring ...
Some international funds are giving around 40% returns. Should you invest?  Economic TimesInternational mutual funds are topping the return charts. The category has returned around 20 per cent in one year. Should retail investors bet on these schemes ...
Should I cut down my stock allocation and invest more in mutual funds?  Economic TimesMy risk appetite is moderately high and my investment horizon is 10 years. Please review my portfolio. I am investing in the following mutual fund schemes:
5 strategies for investing in mutual fund in the current market to get good returns  Moneycontrol.comMutual fund investing is all about ascertaining your goals and setting out to reach them.
Here are top buys and sells by mutual funds in August when Sensex, Nifty hit record highs  Moneycontrol.comAmong largecaps, HDFC AMC, Sun TV Network, TVS Motor, Vedanta and Tech Mahindra topped the August buying list of top 10 mutual fund houses which ...
How to Invest in Mutual Funds  The Motley FoolIf you want to understand how to pick the right mutual fund for you, you've come to the right place. In the guide below, I've put together all the major pieces of ...
Choose your mobile app wisely to invest in direct mutual funds  Moneycontrol.comSome mobile apps are not updated on regular basis. Often there may be errors in the stocks portfolio of several schemes.
IL&FS downgrade to hit 35 MF schemes as well  Economic TimesMUMBAI: ICRA has downgraded the debt of IL&FS to a level below that considered investment-grade for mutual funds, putting the spotlight on asset managers ...
Top 10 large, mid and smallcap stocks which fund managers bought & sold in September  Moneycontrol.comFears of a liquidity crunch following the IL&FS crisis hit the mutual fund industry in September. Cash plans, or liquid funds, were the worst hit.
These 10 stocks make up over one-third of entire mutual fund portfolio in India; check full list  The Financial ExpressEven as Sensex and Nifty continue their strong rally driven by a cheer in blue chip stocks, just 10 top names make up a whopping 34% of the entire mutual fund ...
Benefits of asset allocation in mutual funds  Economic TimesWith macros looking weak and stock market indices at a new high, financial planners believe it is important for investors to follow the principle of asset allocation.
Mutual funds' AUM plunges by Rs 2.11 lakh crore in a month  Economic TimesThe drop in the asset base is mainly due to an outflow of Rs 2.3 lakh crore from MF schemes.
6 mistakes that small investors make when stock market is doing well, interest rates are rising  Economic TimesThe biggest mistakes happen when markets are doing well. In many cases, the SIP returns are in the red.
Mutual funds sell financial stocks the most as markets soared in January  MintMutual funds locked in gains in financial stocks the most among the top stocks in January, taking advantage of the run-up in the pack and record high levels in ...
What Is a Mutual Fund? Pros, Cons, Types and How to Invest  TheStreet.comKeep hearing about mutual funds but don't really know what they are? No sweat! TheStreet breaks down what a mutual fund is, the different kinds, and how to ...

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