Market Globalization

Just 30 years ago the stock market was a shadow of what it is today. There were many fewer shareholders and the daily volume was a fraction of what it is at present. No one thought you would every be able to trade a billion or more shares in one day. Of course that was in the old days when they had tickers and the word digital was something you did with your fingers.

Now we have world markets. There seems to be a stock exchange in almost every country. Did you know there is a stock exchange (of sorts) in Baghdad? I have not heard if they are back in business now that the war is over.

It is kind of amazing that with all these new traders and with all the varied stocks in every part of the globe that market mechanics would have changed. They have not.

As a technical analyst and trader (I was an exchange member and floor trader for 17 years) I still see the same trading patterns I saw 30 years ago. Wouldn't you think with this tremendous expansion that something would be different? It isn't. Why?

The reason is very simple. People don't change. The basics of the market ? fear and greed ? still dominate. Emotions have not differed in thousands of years. As far back as recorded history people have reacted in almost the same way.

The emotions of traders can be plotted and you can see it in the charts that are printed out each day to show the price action of the market. Once an upward trend sets in people begin to buy, putting the market higher attracting more buyers until the greater fool application has run its course.

In the years I have been trading I have seen many new technical indicators. When you think about it almost all of them are based on the emotions of the mass of investors, even such simple indicators as moving averages. As a continuing student of the market I have studied and have used many of them. I don't know any successful investor who does not use them.

A broker or financial planner who does know understand and use these indicators is doomed to failure. If anyone in the financial field every says they don't work you can be sure he is a loser because he has not taken the time to learn his trade. He is worse than a carpenter who does not know how to use a hammer and saw.

A good technician can go to any exchange in the world, not know the language and still make money.

Stock charts are like EKGs that doctors read to see how your heart is doing. Some doctors can understand them and other have not learned.

The basic principles of trading have not changed over the years even though the market is many times larger than it was because people have not changed. Whether you invest on your local exchange or globally everything remains the same.

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

[email protected]; 1-888-345-7870

In The News:

Here are the mutual fund favourites in April  MoneycontrolMaximum month-on-month change in value was seen in TCS, ICICI Bank and Kotak Mahindra Bank.
Beaten-down midcaps could be on their way out of the woods  Economic TimesBattered mid-cap stocks may attract investors once again now that their valuations are lower and amid expectations of more flows into domestic mutual funds if ...
Reliance Capital to exit mutual funds biz; sells stake to JV partner Nippon Life Insurance  Economic TimesNew Delhi: Reliance Capital (Rcap) Thursday said it will exit the mutual funds business by selling its stake in Reliance Nippon Life Asset Management Ltd ...
A young investor’s guide to mutual funds  Economic TimesMany young investors, who are barely a year or two old in their career, are eager to start investing in mutual funds. ETMutualFunds.com receive many queries on ...
Should you invest in DSP Quant Fund NFO?  LivemintDSP Mutual Fund has launched a new fund offer (NFO) for DSP Quant Fund. The new scheme proposes to select stocks based on pre-determined rules and ...
Top 10 large, mid & smallcap stocks MFs bought in April; do you own any?  MoneycontrolMutual fund (MF) inflows moderated in April even though Indian stock benchmarks rewrote history. The Sensex touched a *fresh* record high of 39,487 on April 18 ...
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Sebi allows mutual funds in exchange traded commodity derivatives  Economic TimesNEW DELHI: The Securities and Exchange Board of India (Sebi) on Tuesday allowed mutual funds to participate in exchange-traded commodity derivatives ...
Large cap index mutual funds continue to outshine actively-managed large cap schemes  Economic TimesLarge cap index funds are outperforming the actively-managed large cap mutual fund schemes in the past one-year period. Kotak NV 20 ETF is topping the ...
As market prepares for Modi 2.0, here are 13 stocks to invest in for five years  Moneycontrol.comEarly trends put NDA in a comfortable position to form the government that has, to an extent, already been factored by the market after exit polls.
Vetri Subramaniam, UTI Mutual Fund, talks about which stock segments he favours now  Economic TimesIndia's growth trajectory has been consistent over the past two decades and many firms have performed well across cycles, Vetri Subramaniam, Group President ...
Stocks vs Mutual Funds: Which is a Better Option to Invest?  EntrepreneurStocks and Mutual Funds have their own set of hiccups, which are better to know before making your investments.
Why do wealth managers recommend multi cap mutual funds?  Economic TimesMany wealth managers believe multi-cap funds are a good starting point for long-term investors, specially those using SIPs for wealth creation.
India’s second biggest fund house busy lapping up stocks that are down 45-72%  Economic TimesICICI Prudential Asset Management, the country's second-largest money manager by assets, was busy all through April lapping up beaten down stocks, when ...
Hot and Cold Stocks of Mutual Funds in April 2019  MoneylifeIn April 2019, Larsen & Toubro and Hindustan Petroleum Corporation(HPCL) were the most preferred stocks of Indian mutual funds.
Time to shop? 150 stocks at attractive valuations vs historical levels  MoneycontrolOnce short-term uncertainty subsides, investors are likely to chase value. Attractive levels are starting to emerge in the midcap universe and select opportunities ...
Holding of mutual funds in private lenders at a fresh high in April  Business StandardThe holding of mutual funds (MFs) in private banks saw its weightage increase to a new high of 19.3 per cent in April — the seventh straight month of increase.
More active managers are beating the stock market again thanks to the trade war: Goldman Sachs  MarketWatchActive stock pickers are having one of their best years since the financial crisis, and these money managers can thank rising U.S.-China trade tensions for their ...
How to Choose Between ETFs and Mutual Funds  U.S. News & World ReportInvestors can add either mutual funds or ETFs to their portfolio.
Indians won’t invest in stocks, debt till election 2019 ends  QuartzInvestors in India are waiting the election out. In April, inflows into equity mutual funds (MFs) dipped to their lowest levels since January 2017, according to data ...
How concentrated is your mutual fund portfolio?  LivemintA concentrated portfolio can backfire badly if the fund manager's strategy goes wrong.A portfolio with few stocks can fall sharply if share prices of most stocks in ...
What to do if your mutual fund scheme earns more return than your investment  Economic TimesAre the returns shown in your mutual fund account statement same as the returns delivered by your fund? It is quite likely that you might have earned less than ...
Investing in mutual funds? Size of fund doesn't matter  Economic TimesA bigger MF is not always a better fund. If you come across a well-performing small fund, invest in it.
Retail Investors Should Take Exposure To Midcap Stocks Through Mutual Fund Route: Ankit Jain, Mirae Asset Global Investments  BW BusinessworldIn an interview with BW Businessworld, Ankit Jain, Fund Manager, Mirae Asset Global Investments (India), talks about Consumption led funds, lending rates and ...
Financial planners recommend new fund from Mirae Mutual Fund  Economic TimesConsistent performance of the existing equity mutual fund schemes at Mirae has prompted financial planners to suggest the Mirae Asset Focused Fund to ...
Should you invest in the DSP Quant Fund NFO?  LivemintDSP Quant Fund to select stocks based on pre-determined rules to eliminate bias.The NFO of DSP Quant Fund will remain open till 3 June.
Will these mutual funds help me to build Rs 50 lakh?  Economic TimesI am a new investor in mutual funds. I am 30 years. My aim is to build a corpus of Rs 50 lakh or more in 10 years. I am planning to invest through SIP in mutual ...
Sensex plunges 1,313 pts from record high on profit booking as NDA leads  Business StandardDuring the day, Sensex and Nifty hit the levels of 40000 and 12000, respectively, for the first-ever time.
MF holdings of auto stocks at record low: Motilal Oswal study  BusinessLineMutual funds' holdings of auto sector stocks stood at a record low in April, finds a study by broking house Motilal Oswal Securities. The weightage of the auto ...
Your investing technique is successful only if you meet your money goals  Economic TimesFollowing the right processes plays an important role in achieving investing success, but it is not enough.
Stay away from stock tips  LivemintIf taming the stock market was easy, everyone would do it.Losing money in market is real and facing volatility is part of the deal.
What netas invest in: mutual funds, Reliance, KF shares  Deccan HeraldFixed deposits and tax-free bonds seem to be among the most favoured financial investments for the political leaders fighting the 2019 Lok Sabha polls, while ...
How Vanguard Patented a Way to Avoid Taxes on Mutual Funds  BloombergControversial heartbeat trades help the funds avoid taxable gains.
As equity mutual funds' returns turn negative, debt outperforms  Economic TimesGains of 13% in the Sensex have not benefited equity fund investors, for whom returns in traditional debt funds investing in government bonds may have been ...
What Are the Different Types of Mutual Funds?  NerdWalletSift through the most common types of mutual funds: Those that invest in stocks, bonds, both stocks and bonds, and short-term debt.
Equity funds record highest ever exposure in banking stocks in March 2019  Business TodayAs per the latest data available from the SEBI, overall deployment of equity funds in bank stocks grew around 52 per cent year-on-year (y-o-y) in the month ...
Don’t write off fund managers, they still have a lot to offer  Economic TimesEquity funds of late have struggled to keep pace with their benchmark indices.
Advantage exit poll: A battered corner of $2.1 trn stock market may shine  Business StandardA battered corner of India's $2.1 trillion stock market -- mid-cap shares -- may be ready to shine after exit polls in India signaled a second term for Prime Minister ...
What Type of Mutual Fund Schemes Should You Invest in? Know Here  News18Equity funds are mutual funds which invest majorly in equity stocks of listed companies. They are considered to be risky but they tend to give higher returns in the ...
China Stocks at the Mercy of Foreigners Like Never Before  BloombergThe record pace of foreign selling in China's equities matters now more than ever. While overseas traders are quickly souring on yuan assets, they've also never ...
IT, pharma and telecom top sectoral picks for mutual funds in April  Economic TimesFund managers have been sellers in select public sector companies.
Betting on: FIIs, MFs raise stake consistently in 8 companies in last 4 quarters  MoneycontrolThe first and the most important step towards wealth creation is stock selection. Ideally, stocks selected or filtered should be based on your own research ...
Mirae Asset Large Cap Fund: Fund review  Economic TimesThe scheme tops the list of best performing large-cap schemes for the past three-year and five-year periods, delivering returns of 18% and 20% respectively.
Essel group companies shares fall 2-10%; Reliance Mutual Fund exits  Business StandardShares of Essel group companies fell 2-10 per cent on Wednesday on worries about its stake sale getting delayed. Meanwhile, Reliance Mutual Fund (MF) ...
Look who is sitting on a cash pile to buy stocks after election result  Economic TimesMUMBAI: The domestic equity market is likely to trade in a narrow range until the election results, with foreign fund flows slowing down and mutual funds opting ...
7 Smart Mutual Funds for Income Investing | Dividends  U.S. News & World ReportMany investors turn to bonds and dividend stocks as their first destination for income. However, picking individual stocks can be daunting and building a ...
Mutual Fund Update: Stocks that attracted fund managers in April 2019  Dalal Street Investment JournalIf we look at the March 2019 data, then the energy sector was the one that featured on top of the buying done by the fund managers. However, the story in the ...
Stop! Too many stocks, mutual funds are not good for you; Buying too many may not get you more  The Financial ExpressHandling the overall risk of investments is crucial, but not at the cost of not meeting your financial goals. Over-diversification can do this.
Liquidity Scare: NBFC stocks slide on fears of spillover  Economic TimesAny default or downgrades in NBFC space will have a cascading impact on the entire sector.
12 stocks where promoters, FIIs and DIIs all raised stakes in Q4  Economic TimesIn the March quarter rally in Indian equities, 12 stocks stood out, having seen simultaneous increase in shareholding by promoters, domestic mutual funds as ...
The US stock market can’t stop, won’t stop its endless rally  Economic TimesThe U.S. stock market in 2019 has exploded, with the S&P 500 index rising 18 percent and the total market adding about $5 trillion in value. Clearly, it stands to ...
Bech de kya? How to answer this question in stock market  Economic TimesThe phone rang. And I was not surprised. This name always lights up my phone screen when the market hits a new level – high or low. And the question is ...
What Makes Berkshire Hathaway Shares Better Than an Actively Managed Mutual Fund?  Motley FoolTo start with, the company is a lot more than Warren Buffett's carefully selected stock portfolio.
Vanguard issues 10-year forecast for stock, bond market returns  Philly.comVanguard on Tuesday released 10-year projected returns for stock and bond markets, an eagerly awaited piece of research out of the world's largest mutual ...
People Want to Buy Uber Stock  Bloomberg“Uber IPO Is Oversubscribed by Day Two of Roadshow,” it says here, but I would say that Uber Technologies Inc.'s initial public offering was oversubscribed by ...
Yes Bank plummets 29% in a day; Is it a value buy now?  Economic TimesMUMBAI: Shares of Yes Bank plunged 29% on Tuesday after reporting its first ever quarterly loss, leading to an erosion of Rs 16,000 crore in market ...
Best Online Stock Broker: Which Do Mutual Fund Investors Favor?  Investor's Business DailyWhich are the best online stock brokers for mutual fund investors? Data from IBD's Best Online Brokers survey shows those that rate highest.
‘Whack-a-Mole’ Stock Market Is Now Getting Hit From All Sides  BloombergThere's the trade war, the escalating conflagration in Washington, near-anarchy in the U.K. and tensions in the Middle East. Add perceptions of a stiffening ...
Equity mutual funds turn defensive, log out of stocks  Times of IndiaCoimbatore: Even as FPIs (foreign portfolio investors) continue to bet big on the Indian market, equity mutual funds (MFs) have turned defensive and have ...
Shadow banks feel sting as mutual funds cut exposure  Economic TimesMF investments in commercial paper and bonds dropped to Rs 3.24 lakh crore at the end of March.
Avoid investing in mutual fund NFOs: Here's why  Economic TimesWait for a fund to build a track record and prove its credentials before putting money in it, say experts.
Top fund houses among main bidders for Voda Idea issue  Economic TimesMUMBAI: Franklin Templeton, Eastspring Investments, ICICI Prudential Mutual Fund and SBI Mutual Fund were among major financial institutions to bid for the ...
For First-time Investors, Here's All You Need to Know about About Mutual Funds  News18It is that time of the year again when the question of where to invest your money clouds your head. If you are a new investor planning to put in money in mutual ...
Mid and small-cap stocks may outperform if BJP gets majority: HDFC Securities  MoneycontrolExit polls are expected to be announced from May 19 evening, once the last phase of the election is over. Therefore, the market is likely to be very volatile from ...
RCap looks at new home for fin companies  Economic TimesReliance Capital holds 100 per ent of RCFL and 50 per ent of RHFL.
Aditya Birla Sun Life Mutual Fund seeks SEBI nod for banking ETF  MoneycontrolAditya Birla Sun Life Mutual Fund has sought the Securities and Exchange Board of India's approval to launch Aditya Birla Sun Life Banking ETF, according to ...
An Educational Web-Series devoted to Mutual Funds that can help you invest.  CNBCTV18What are income funds? Income funds are open-ended medium-term debt mutual funds, ETFs or any other type of funds that aim at generating an income ...
Corp FDs, NCDs draw investors wary of debt MFs  Economic TimesMUMBAI: The prevailing stress in debt mutual funds is prompting investors to put incremental money into fixed deposits and non-convertible debentures (NCDs).
3 Passive Funds to Buy on Strong Inflows & Healthy Assets  Zacks.comInvestors have more money parked in such funds compared to the actively managed ones.
Income Tax: Know how much you pay on returns from equities, mutual funds  Zee BusinessNo matter how much you invest in equities, it is important to know how much tax you are liable to pay, as it reduces your overall income.
Explainer | Wealth creation: Why you must focus on investing as much as possible for the longer term  MoneycontrolThe longer you let your money work hard, the more money you take home. If you keep investing your monthly commitment, you will walk away with a large sum.
TD Ameritrade Cuts Fees on ETF Trades in Further Blow to Mutual Funds  TheStreet.comAs competition heats up in the exchange-traded funds industry, TD Ameritrade nearly doubles the roster of ETFs eligible for commission-free purchases....BLK.
Reliance Nippon Life: Soft FY19 earnings, but ADAG stake sale may move the needle  MoneycontrolHighlights: - Total AUM growth in FY19 moderates, but finer details are encouraging - Business and customer mix changes favourably with higher equity and ...
Will the tropical cyclone in NBFCs make a landfall?  Economic TimesTo be sure, there hasnt been any major default to destabilise the market.
Stocks melt as Trump turns up the heat in trade war with China  LivemintMUMBAI: Indian stocks joined a global sell-off on Monday as heightened trade tensions between the US and China, the word's largest economies, risk derailing ...
Top 10 stocks that mutual fund managers bought and sold in March 2019  Moneycontrol.comData for equity flows into mutual funds for March came as a breather after a weak February. An increase in net inflows in equity and income category led to the ...
What India's top three mutual funds bought and sold in March  Economic TimesIndias largest money manager held 1.5 trillion rupees in equities.
Another Marijuana Stock on U.S. Exchanges  Investorplace.comWhy jumping exchanges leads to more institutional money … and how getting in ahead of it can make small investors big returns. It's official — OrganiGram has ...
Can mutual funds give multibagger returns like stocks?  Economic TimesStocks can be multibaggers. They can offer extraordinary returns in a very short period. Can mutual funds ever do that? This was a question thrown at Rajeev ...
Govt tweaks rules, increases limit to disclose investment in stocks, mutual funds for employees  Economic TimesNew Delhi: The Centre has increased the over 26-year-old monetary limit on disclosure of investment in shares and mutual funds by employees to six months of ...
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.
Active mutual funds fail to reflect index gains  Economic TimesThe Nifty, which has hit all-time highs for the second time in April, has advanced 12% in the last one year. But these gains are yet to reflect in many mutual funds' ...
What top 5 money managers bought and sold in February  Economic TimesFebruary was the fourth consecutive month of decline in net investment into equity mutual funds.
I want to invest Rs 1 crore in stocks and mutual funds for 5 years. How should I invest?  Economic TimesYou may consider the following asset allocation: 40% in large-caps; 40% in large and mid-cap, or multi-caps; and remaining 20% in mid- and small-cap funds.
Mutual funds or direct equity investment – which is better?  Economic TimesOne big question that often dogs investors is which investing option should they opt for: mutual fund or direct equity? Katalyst Wealth's Ekansh Mittal ends your ...
Mutual Funds increase holding in ‘attractively valued’ oil & gas stocks  Economic TimesMUMBAI: Mutual funds have been adding shares of oil and gas companies such as GAIL, HPCL, BPCL and ONGC over the last few months, encouraged by ...
Mutual funds shooting themselves in the foot?  Economic TimesWhat if banks take a leaf out of Kotak and HDFC Mutual Funds' decision to direct investors to come another day to get their money instead of paying them on the ...
Mutual funds bet big on these 30 stocks in November; do you own any?  Moneycontrol.comThe Indian equity market rose about 5 percent in November but what was more heartening to see was inflows into mutual funds. Investors pumped Rs 1.4 lakh ...
Mutual funds sell several blue chips stocks, buy mid-caps in March  Business StandardDomestic money managers were seen pruning their holdings in several blue-chip stocks, including Reliance Industries (RIL) and Housing Development Finance ...
27-year-old rule changed: Disclosure limit on MF, stock investment up for bureaucrats  Economic TimesGroup A and B officials had to intimate government if total transaction in shares or MFs exceeded Rs 50K.
Should I increase investments in mutual funds once I have more money to invest?  Economic TimesI am a 19-year-old student. I want to invest Rs 2,500 per month in mutual funds for 7-8 years. Can I increase the investment amount with time—once I have more ...
Investors sent net $3.99 bln into U.S. stock mutual funds, ETFs last week -ICI  Yahoo FinanceBy Jennifer Ablan NEW YORK, April 24 (Reuters) - Investors sent a net $3.99 billion into mutual funds and exchange-traded funds that hold U.S. stocks last week ...
Here’s a better tool to judge mutual fund performance than simple 1-year, 3-year returns  Economic TimesOne invests in mutual funds to earn potentially higher returns than those in traditional investment products, and I'm sure everyone looks at the one-year, ...
Why your core equity portfolio should be in index mutual funds  Economic TimesInvestors flock to the performing fund “after” it has beaten the index. Fund selection is not an exact science, and there will be hits and misses.
Quantum Mutual Fund uses cash pile to buy stocks cheap  Economic TimesQuantum Long Term Equity Value Fund, where value investing is the pronounced fund allocation theme, has brought down the level of cash at its plan to the ...
What top mutual funds bought and sold last month  LivemintMumbai: Inflows into Indian equity mutual funds in January were the smallest in two years as heightened market volatility and political uncertainty cooled ...
Check out what top five mutual funds bought & sold during October selloff  Economic TimesNEW DELHI: Mutual funds stood resilient as industry's asset base increased to Rs 22.23 lakh crore in October in spite of a heavy correction in the domestic ...
New SIP investors feel the pain as equity fund returns disappoint  Economic TimesSip by sip: That's how the average Indian had a taste of equities in the past couple of years. But the steady road to riches, which involved monthly mutual fund ...
5 funds that outperformed the recent surge in Nifty returns  Economic TimesFunds that bet on banks and financial services managed to outperform during this period.
What India's top three mutual funds bought and sold in February  LivemintMUMBAI: Inflows into Indian equity mutual funds in February were the smallest in more than two years as savers held back investments amid market volatility ...

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