Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
Dont Fight The Fed > NetSparsh - Viral Content you Love & Share

Dont Fight The Fed

One of the great truisms of Wall Street is "Don't fight the Fed". For the long term investors this has resulted in greater profits. When the Federal Reserve Board hikes interest rates look out and when the do it 3 times in a row it is called "3 jumps and a stumble". We have just gone through the stumble and it has been costly.

When you go back in history you will find that the stock market has almost always gone down substantially after the Fed has jumped interest rates 3 time in a row. As of this writing the Fed has lowered rates twice and we are looking for a third cut very soon. When that happens you will know that there is very little likelihood of the market going lower.

The stock market moves more on anticipation than fact. Another old saying is "Buy the rumor and sell the news". Because of what Mr. Greenspan has done we anticipate the market will rally and the rumor is he will do it again so we have two reasons to think that stock prices will move higher. He caused all this mess and now we look to him as our savior. It should be as the Queen of Hearts said, "Off with his head". Unfortunately he is appointed and cannot be removed from office even by the President. Just don't give him undo credit for lowering interest rates when he should not have raised them in the first pace.

For the smart long term investors when they see the Fed raising interest rates they should immediately pay attention top their stock and mutual fund holdings with the idea of selling them and placing the funds in a money market account. The investors won't be making any capital gains, but they also won't be standing in front of the train as it comes barreling down the track and runs them over. No, you don't have to sell immediately as it takes several months for interest rate increases to take effect - usually about 9 months.

When rates are lowered there will also be a time lag of 6 to 12 months which gives you opportunity to start picking some winners for the next bull market. Forget that Wall Street conventional wisdom of "do your research". Research is basically worthless. If you can find it out then everyone else already knows it and it has been reflected in the price of the stock. Let me give you a method that is too simple for your broker. He will tell you it won't work except it does.

Every Friday there is a listed in Investor's Business Daily on the back page about 40 charts of the week's best performing stocks. Notice they are all in uptrends. You could buy almost any one of these and check it weekly to see that it remains in the trend. When it falls out, sell it.

There are other equally simple methods your broker will not recommend. They want to keep the Wall Street mystique. Once you find out how easy it is to make money you won't need them. It is your money. Are you willing to work a little to make it grow?

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

al@mutualfundstrategy.com; 1-888-345-7870

In The News:

This RSS feed URL is deprecated, please update. New URLs can be found in the footers at https://news.google.com/news

Motley Fool

ETF vs Index Mutual Fund: Which One's Better?
Motley Fool
Index mutual funds and ETFs are both designed to track the performance of an index. An index is a group of securities investors use to describe how the stock market's performing. Indexes typically use a weighted average of all the securities in the ...
The Mutual Fund Show: Don't Break These Rules Of InvestingBloombergQuint

all 3 news articles »

Taking Stock: Differences in mutual funds and ETFs important for investors
NewsOK.com
Dear Mr. Berko: What's the difference between exchange-traded funds and mutual funds? I just read your column on convertible bonds and noticed that you only recommended ETFs and didn't write about mutual funds. I bought $10,000 worth of Franklin ...


The Union Leader

Marc A. Hebert's Money Sense: Navigating the many categories of mutual funds
The Union Leader
These funds hold stocks of companies that are expected to grow at a rate faster in relation to the overall stock market. Risk varies, but in general they are less risky than aggressive growth funds because they normally invest in well-established ...


Wall Street Journal

Some Mutual Funds Have Avoided the Recent Tech Pain
Wall Street Journal
There's a silver lining when the most popular technology stocks stumble: many large-cap mutual funds beat the market. Those funds have fared better than the S&P 500 on most days when one or more of the FANG stocks--the collective name for Facebook ...

and more »

Seeking Alpha

Best And Worst Q3 2018: Basic Materials ETFs And Mutual Funds
Seeking Alpha
The Basic Materials sector ranks ninth in Q3'18. Based on an aggregation of ratings of the 158 stocks in the Basic Materials sector. FXZ is our top-rated Basic Materials ETF and VMIAX is our top-rated Basic Materials mutual fund. This idea was ...


Wall Street Journal

The Case for Stock-Picking
Wall Street Journal
Fewer people directly own stocks than before, and individual investors have spent the past 25 years steadily moving money out of actively managed mutual funds toward index funds and other so-called passive investments. And at the Heard on the Street ...


Motley Fool

How to Invest in Mutual Funds
Motley Fool
A mutual fund enables you to own a basket of individual stocks simply by owning one share of the mutual fund. Mutual funds are "actively managed," meaning that each one has a manager whose job is to pick stocks for inclusion in the fund and try to beat ...

and more »

TheStreet.com

Investing For Retirement: What Not to Worry About
TheStreet.com
"Their return would be, if let's say they take two mutual funds that were replicated like the S&P total stock market, and then they could pick one bond fund, they would have a pretty general index. So they're total stock, which returns 8% historically ...


CBS News

Fidelity offers new zero-cost mutual funds – should you switch?
CBS News
In the investing world, there's no such thing as a free lunch. But that all changed last week, when Fidelity Investments, the mutual fund and brokerage giant, launched two stock index funds with zero expenses. To be clear, this is a unique thing in the ...
Opinion: Fidelity now offers zero-fee funds. What does that mean for you?MarketWatch

all 8 news articles »

Investor's Business Daily

Which Stocks Are The Best Mutual Funds Buying? Here's The Latest List
Investor's Business Daily
Over the last three months, top-performing money managers invested heavily in the transportation, medical, retail and semiconductor sectors. In addition to United Airlines, the best mutual funds also picked up shares in six other transportation stocks ...

Google News

How to Maximize Your 401k Mutual Fund Returns

When it comes to 401k's there is an overabundance of... Read More

Hot Stock Investing ... How to Pick Hot Stocks with Momentum Stock Trading

Profitable day traders recognize that momentum trading is among the... Read More

Mutual Fund Commissions

You have heard about a particular mutual fund from a... Read More

Psychology ? How to Reduce Negative Thoughts Relating to Trading?

The thinking process of the brain relating to the... Read More

Performance Funds

Mutual funds are doing more and more to discourage investors... Read More

Analyzing Growth Stocks: An Important Focus For Any Investor

Analyzing growth stocks is an important focus for any investor.... Read More

Hedge Funds

You read and hear a lot about hedge funds. Unfortunately,... Read More

Its A Duck

If it walks like a duck, quacks like a duck... Read More

Fake Money

Reach in your pocket and take out that big roll... Read More

The POWER of a Proven Stock Investment Plan

When you invest in the stock market for ever-increasing cash... Read More

Stock Market Volatility

In my opinion, due to the volatility of stock market... Read More

The Cub; II

We keep hearing about this bear market and that the... Read More

Perfect Storm

Having lived aboard a sailboat for 2 years I was... Read More

Dont Buy Worldcom! A Guide to Wise Bottom Fishing

Over the past few months, several investment professionals have brought... Read More

Intervention

Intervention. Now don't let that big word scare you. The... Read More

Boiler Room 7/17/00

On Friday or Saturday evening my wife gets a movie... Read More

Stock Analysis

I receive emails from Morningstar. This company provides statistics and... Read More

Lies, Damn Lies and Mutual Fund Returns

How many times has this happened to you? You're at... Read More

Maximizing a Stock Market Investment

Maximizing a stock market investmentThere are several factors an investor... Read More

Bargain Basement - Finding Stocks That Go Up

Have you been listening to the talking heads on CNBC-TV?... Read More

Small-Cap Stocks: The Beginning of the Journey

When an individual investor wants to roll up his sleeves... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

Stock Market System ... ONLINE STOCK TRADING ... Beyond Day Trading Basics & Tips

Day trading is all about making buy and sell decisions.... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Learn to Calculate a Stock?s Pivot Point

Stocks breakout from properly formed bases everyday but many investors... Read More