!st timer here, where should I put the only $12000. I got. Never tried the market before? Any good bets out th
Answers
1902 points
alanj answered 11 months ago …
To start out I would suggest something safe and conservative. That would mean either an index or sector of funds. One of the safest would be the S&P 500 Index (SPX). And right now it is in an intermediate uptrend. But wait for a dip within the next couple of days to a week. It's currently in the area of the top of it's top trendline. Wait for it to dip down to the area of it's bottom trendline. An alternative to SPX would be an ETF like (SSO). There is slightly more risk. The objective is to double whatever to underlying index is doing on a daily basis. Another words, if SPX is up 1% then SSO will approximately be up 2%. But the opposite is also true. If SPX is down 1% then SSO will be down 2%.
If the S&P 500 starts to trend down- the way to profit from it's down trend is through the ETF (SH). If SPX goes down 1% SH will go up 1% (approximately). If you want to double the SPX daily results use the ETF (SDS). Another words if SPX goes down 1%, SDS will go up 2%.
(SSO, SH, and SDS are ProShares instruments.)
Start reading up on how to use technical indicators. Some key indicators are MACD, RSI, SLOW STOCHASTICS, and WILLIAMS % R. MOVING AVERAGES ( MA) are also useful. Some key MA's are 13, 50, 100, and 200. The Daily chart is the most useful chart. The Weekly chart and a 15 or 30 minute chart also have their uses.
Another indicator that is used for the S&P 500 is the volatility index (VIX). ( It would be entered as a stock symbol on a stock chart.) When the VIX is high or low on the chart the S&P 500 is close to reversing it's trend. (Note: The VIX and the S&P 500 trend in opposite directions)
Another useful but uncommon tool for certain sectors and markets is the Bullish Percent Index. When the index indicator is high or low on the chart of the particular sector or market it is likely to reverse. But use your other indicators to trade by. It is an early warning indicator. A free source is located here- http://stockcharts.com/symsearch/?$BP
I would also suggest using protective stop orders.
781 points
jillybeansisme answered 11 months ago …
Kinkydread, if you are a 1st timer, you may not understand all that AlanJ had to offer in suggestions. Most people do not understand the jargon. As a first timer you need absolute basics. While you are learning, a good source of info is Tickerhound's General Market articles. Read them all.
Meanwhile, do you have an emergency fund? Some of the money should go into that. Do you have a retirement fund? Some of the money should go into that. You should also determine what your risk tolerance might be. Since you are a 1st timer, I would recommend being conservative with at least 50% of the money, moderate with 40%, and aggressive with 10%. And these investments should be diversified. Mutual funds often do not outperform the indexes. A good way to get alot of bang for the buck is ETFs (Exchange Traded Funds). They trade like stocks, but have positions in many companies. When you do decide to invest in something, do not use more than 3-4% of your bankroll in any one investment. This way you protect yourself if one investment goes south. Definitely have an exit policy (when to sell off your investment if it goes bad and when to sell off your investment if it goes up).
There are many good investment newsletters that are free. Tickerhound articles, The Motley Fool, Forbes just to name a few. Learn for free. Get your feet wet. There are soooooooooo many investment "gurus" who have "invented" a tried and true way to multiply your money by 8 zillion percent . . . but they make their money by taking yours through exhorbitant subscription fees (ok, not all of them but as a newbie, how would you know which one?).
You give us very little info to go on. People in different stages of life should invest differently. I hope this helps.
952 points
rvilmur answered 11 months ago …
I would go with a basket of the Canadian Energy Oil and Gas Trusts which are currently beaten down and pay very high Monthly dividends over 10%.
Look at PVX, PWE, HTE, and AAV. These are symbols for U.S. exchanges.
When energy prices go up again, you can get good capital gains in addition to the large monthly dividend.
There is a 15% Canadian withholding tax which reduces the dividend; but you get most of that back by filing for a foreign tax credit when you file your taxes. This reduces your U.S. taxes. The dividends are all qualified for the 15% tax dividend rate.
356 points
Dusty answered 11 months ago …
I have been in the Market for about two years. From my experience so far I would suggest dividend paying funds. Sources of suggested stocks are in places that have to be paid for; it is not cool to broadcast them for free. If you open a Scottrade account, or a Scottrade IRA and subscribe to Oxford Club and subscribe to Personal Finance (Neil George at KCI) you can get a list (OC) of Closed End Funds and other pre-screened securities. Read and study the Market some and I would suggest 5 or 6 of those eight named funds, $1K each. Then go to PF and pick up some things like a couple of rural telecoms and Canadian Trusts that pay good dividends, again at $1K worth each. The diversification will help protect your money. You are playing with pennies, like me. You probably should not try to match what the folks with real money do.
Never, never, never get involved with Options. You do not have enough money to play that game and the people 'selling' will not tell you about the very high loss rate even among the professionals (said with apologies to the folks at "Tycoon," but it is the truth for us ordinary mortals).
Rule: Not more than 2% of your annual investment for: Fees, Advise, ALL oher costs and charges, Inclusive. Rule: Not more than 2% of your portfolio in any one security (except that you and I do not have enough to invest to comply, but you get the idea). Rule: Reinvest the dividends paid. Some On-Line (Read; Cheap) brokerages will let you set up automatic reinvestment of dividends. But then they charge you "Inactivity" fees. Scottrade (another cheapie, but easy to live with) just accumulates the dividends in your account. If you can get by without the cash, invest it when it gets to $1K or include it in the next investment you make. After you have put enough in your employer's 401K to get the Matching Cash, add money to your Brokerage Account/investments to equal at least 10% of your gross income. If you work for the Federal Government make that 15% into your TSP account and then 5-10% more into your Taxable Brokeage Account. What you cannot afford is to put less than 15-20% into your future well being.
If you pay off Credit Card debt, the interest saved will more than cover the cash you put into your investments. Real Estate: a house paid for is a mortgage or rent payment you do not have to make. Call it "Ghost Income." "Ghost Income" is tax exempt, too. 15year fixed rate mortgage!!!
Note: Pay for subscriptions by snail mail with a check. Credit cards will put you in 'Automatic" renewals forever. It can be quite difficult to stop the Automatic. I had to close one Credit Card account and open a new one to stop one of those "Automatics" in spite of the assurances that "all you have to do is call."
Read "Tycoon Report" of course, free MorningStar. com, StockGumshoe.com, free MotleyFool.com, all the free E-mail newsletters from KCI Communications, Money Morning if you are an Oxford Club subscriber. Blogs: SeekingAlpha, CalculatedRisk, EnergyAndOil. There are more, but you will find them and the above is enough to drive you over the edge of sanity.
Buy a ticket on-line to Agora's "I.O.U.S.A." movie (and attend on Aug 21) and get a free one-year subscription to their "Strategic Investments" newsletter (normally $99).
Finally, everything on the Internet is laced with wild eyed claims of instant riches and Options strategies guaranteed to create instant wealth. If it sounds too good to be true it is. Think: Carnival Barker and Con-Artist. If you get a callous on your finger from the "Delete" button you are doing right!
Disclaimer: The above is what I do and am doing or have done. Cheers!!!!
508 points
John answered 11 months ago …
First, we would need to know is this $12,000 the only savings you have? Or is this money just to play with in the market. If this is the only saving you have I would recommend a retirement vehicle. If it is to play with in the market I would consider "The Trend Rider" by Chris Rowe at the "thetycoonreport.com".
The Tycoon Report is free and I began to read Chirs Rowe's strategies. I started out with $15,000 and it is hard to play more then one stock or two at a time. I then paid for "Trend Rider" service where you get picks to trade along with Chris Rowe. He trades in option making it cheaper so I was able to play 3-5 trades at a time. I have made a lot of money and highly recommend Chris Rowe for investing in stocks with my non-retirement savings. Like I said the Tycoon Report is free and you can read plenty of Mr. Rowe's material, for free!
190 points
seyobnats answered 11 months ago …
If this $12,000 is your only savings then most competent financial advisors would ask you:
1. Do you have 6 months living expenses in the bank to protect you if you lost your job so you could eat, pay the rent and put gas in the car while looking for a new job?
2. What family obligations might suddenly require you to immediately tap that cash?
3. Do you have outstanding balances on your credit cards? If so, pay them off first. This will give you an immediate an 18-22% return.since you won't be paying that outrageous interest.
4.Is Your car paid off? You are paying the leasing or finance company at least 6-8% on the unpaid balance. Probably more! Pay it off and rebuild your savings.
5. Are you sure you don't know anything about financial matters? If so there is a bridge in Brooklyn, NY that I will be happy to sell you. Many hungry stock brokers will have equally stupid investments.
6. The advice above from Dusty and John is also excellent. If you want to gamble go to the nearest casino. If you want to invest and have met the above conditions, then by all means ask around for a competent, financial advisor or put the money in a retirement mutual fund like Fidelity.
If you look for big gains immediately you have to be prepared for big losses immediately. Do not gamble with money you can't afford to lose. That's why the casinos have so much money. More people lose than win. The stock market can be a loser too. Chris Rowe and Teeka Tiwari of the Tycoon Report can vouch for that.
You were wise to ask the Tickerhound audience for advice. Continue reading Chris Rowe's Tycoon Report and learn all you can. Then make some practice trades on paper. Watch what happens to your picks, Make some more until you have a phantom portfolio. Continue watching and learning. Investigate your picks. You can get the financial report for any company from the NY Times.Free or direct from the company..
Good luck! Knowledge is power! Investigate before you invest!
Seyobnats
139 points
mugsy answered 11 months ago …
Hi Kinkydread,
I just read though the above arcticles and there is some great info for sure. Some of it I would dismiss so not to get too bogged down. If you are new to investing, the first thing I would say is to learn how to invest properly. Read the Tycoon report arcticles for sure. Some of it will be way over your head. It is extremely important to understand and use risk managment and where your "stop loss" will be, 3% of your trade or 5% or 8% for example. Lower % is better, but with more volatile markets you can get stopped out easier. You should know when the risk is lowest and the reward is highest before you initiate a trade. Know how to take a loss and it will save your hard earned money. That is very phycological and easier said then done, but very important to preserving your capital. Take your losses quickly and when you have a winner, let it run. Learn how to move your stops up, so you can allow the winners to run, but it is ok to take some profit along the way.
Swing trading to position trading would be better then day trading. Without experience you will get slautered in day trading. In other words try to stay in your winners for longer periods, (more like investing rather then trading.) Do not get into penny stocks!!! there is too much corruption there, especially on the "pink sheets" (pump and dump scams) and very little transperancy. As the above had mentioned don't touch investments that say for example "others that subscribed had the opportunity to make 8386% returns on their investments in just three months, "you can too"!!! That is a lot of hype and a ton of bull and piled high!!!
You should learn about "fundamentals", a lot of it will be tough to dicifer, but tycoon specialists can guide you there. Steadily increasing Earnings are extremly important, positive cash flow, low or no debt is good. Avoid speculative stocks in other words ones that the company is exploring for gold or copper or oil "or whatever" in an oil rich area, but they do not have any real assets, (gold, oil ect that they have actually discovered and can pull out of the ground or are actually in production (& what are their production costs, also what are their margins (profits from sales).
To lower your risk, which you definetly should, it is best to buy into something of this nature, a trust such as Rvilmur suggests or I like ETF's. ETF's can lower your risk much more then buying an individual stock. You can trade them on line easily and their expense ratio is cheaper then Mutual Funds. Dividends are good for sure, but never buy simply for a dividend, but more because you beleive the stock or fund has already "based" and/or is for sure started on an upward trend. Do not try to catch a falling knife! I will touch on technical analysis shortly also, but NOW For the very best advise that I can give you, from my personal experience. This will show you how to look at the markets in a way you may never in your life look at and understand how they truly work.
I would highly recommend for anyone whether new to investing or a well seasoned trader or investor to take Teeka Tiwari's course on the "ETF MASTER TRADER", (it is within the tycoon group) then continue with the ETF Cash alerts. From then I would recommend a reasonable paid subscription to "investors intelligence" which includes the industry breadth "bell curve" charts. This will show you where the "Smart Money" or "Big Money" Money from "Institutional investors" is flowing in and out of the markets. That is extremely important to where you should be putting your money and when you should put it in and also when to take it out!
Understand this: 68% (as a general rule) of a stock or ETF's movement is dependant on whether it is in the right Sector or not. You can have a fabulous stock (company), but if it is in a sector that institutions are selling off, or "short selling", then it will have a much higher probability that is will trend downwards with the rest of that "industry" and "sector". There are a lot of industries some more concentrated in some sectors. Some sectors only have a more limited amount of industries. There are only about 40 sectors, 9 of which are most often followed.
Dusty mentions brokers, good to find a good one. There is info on tickerhound to help you find a good online broker. You can make your own trades, rather then pay for a brokers recomendation or his flavour of the month.
Ok, things that Alanj and Jillybeansisme mentioned that are realy good to know (along with other good advise there) P&F (Point & Figure) charting is hardly ever used by the average trader but more often used by institutions which follow "Supply and Demand". Teeka teaches how to use P&F charts properly and in great depth. Also BP charts (bullish percent) is covered by Teeka. Those are extremely important also. Teeka also talks about the S&P 500 and his thoughts on it as well, and how it is compared with the rest of the market. You can get some free info on P&F and BP charts at www.stockcharts.com but with ETF Master Trader everything is pulled together so you will understand how to use all the best information and when to use it. He goes over Stockastics as well and when you should use it slow and fast combined which is used differently then most traders have used it, I am sure.
Also some ETF's are much better then others and Teeka "Big T" will show you how to avoid the worst ones, which are the ones with the most risk. He will also show you, once you find what sector you want to put your money into, then how to evaluate the very best ETF to get into , in the very best Sector, and at the very best time to get into it, (or the best stocks in that sector). You will know what amount you should put into it, when to add to your position, how to do it, at a time with the least risk and the most reward, and as I mentioned earlier where to place your stops and when to move them up, ect.
In case anyone is wondering, yes, with his course you will recieve 8 hard copy DVD's in the mail plus a very thick, but well laid out and easy to read book with large graphics covering P&F charting, Bullish Percent, Stockastics. ETF comparisons and how to use them. also a quick reference guide. To me it is by far the very best financial investment I have ever made and am sure nothing will ever top it. Leverage is very important to gain wealth but it is a double edged sword so you want to know how to use it properly.
Other basics on technical investing, are moving averages (MA-s) as alanj mentioned. There are many that you can use, some more for short term and others for long term trading. MACD is good to know RSI also good to know. RSI if often confused with Relative Strength. Both are good to know. These are basic indicators you should learn how to use properly. Also know about volume and how to use it properly. When it surges, (is there a change in trend, up or down)
A lot of leverage can be used in the Forex market also, but you need to know how to use it. You can paper trade in any market first, but trading with real money is different.
Not to start with, but eventually it is good to know about Elliot Wave Theory, also Fibonacci and Fibonacci Retracements are good to know. The "Golden Sequence" is a number sequence used for hundreds of years and used in the markets especially in forex trading. There are fibonacci moving averages from the golden sequence and certain MA crossovers in different time frames that are best to use. Alanj mentions some good MA's used in regular stock markets. 13 is a fibonacci number. 50 day 100 day and 200 day MA's are popular. Go long (buy) above the 200 day MA for the most part when trending upwards. It is best to look at a chart from the longer time frame first to establish if it is really in an uptrend or a downtrend which can go for years. Five years back or I even go back further at least at a glance. Then zoom in to 3 years or two years then one year, six months, 3 months, then closer. Hour charts give you a good overall picture. Also besides daily charts, it is very important to check out weekly clarts and know how they compare and what is the real trend, and is it changing. Great arcticles on this in the tycoon report.
Bar charts are often used, but I always use "Japanese Candle Stick" charts. Also refered to as "candle charts", on some charts click on "CDL" to get these charts. There is some basic info on the internet on how to use these, but they are easier to read at a glance and you will get more info from them then from bar charts. "Steve Nisson" is the person who went to Japan to get the proper translation and he will give you the the very best and proper info on how to use these charts. He has books and also excellent DVD's on this. I highly recommend learning from him. Others just don't cut it, but you can know some basics to start. Originally candle charts were used in the rice trade. When Fear was the greatest in the markets, it was best to buy. Markets run in cycles and history repeats itself. Technical charts are a moving picture of the sentiment of traders, based on underlying fundamentals.
You will have plenty of time to invest, but learn how to do it properly then put it into the market at the right time, with the least amount of risk, with the most to gain on your reward side. I wish you the best for your trading and investing!
John "Mugsy" M
202 points
Lobo answered 11 months ago …
Hey, kinkydread, are you still with us? Did you make it down to the last words? I do think there is good advice in the above answers, however, if you are as new to the stock market as it appears, there were many words meaning nothing to you. So you check out RSI, and the Moving Averages--No, don't start trading yet! Education! Education is essential for all of us in the stock market. Yet, perhaps joining Trend Rider and Teeka's group and following their advice is a good, even superior alternative, to reading books and blogs and articles. I recently bought a book to give to one of my sons--$11 on Amazon : "The Market Guys' Five Points for Trading Success." I recommend it as a starting point. Easy reading actually, with great lessons for all of us to ponder.
Chris Rowe's and Teeka's regular articles are recommended. Free and with useful educational information! I save them all and reread now and then. One question I ask: You have $12,000. Is joining their trading groups cost efficient? That is, you will be paying a subscription that you may not think is insignificant with what money you are working with. For example, if an option position is recommended and it makes 50% in three days, that's terrific! But unless you put all your money into one trading position, that kind of "good" profit may result in dollars, like $40, $75, or even $100. If you are able to purchase even 5 or 10 options or option spread positions instead of one, then you would multiply those small dollar amounts. That would bring smiles and pay the subscription fees, even in this uncertain market. I myself would love to hear from members of those groups concerning my questioning of how much a trader should reasonably have to work with before using such services.
Being in the stock market IS for everyone. Even those with $12,000! Check out savings accounts, CDs, etc. The interest rates are terrible. You can beat that with little risk, but you must take the little time and effort to become market educated. Once knowledgeable, you as a personality can take the risks, do what you as an individual are comfortable doing in the market. Some traders tolerate more risk and stress; some love the steady percentage profit with no stress. I think of sports teams as explaining my point. Some football teams are passing teams, others have a good running game. Or, in boxing, some are sluggers going for a knockout and others duck and weave and jab, jab, jab, piling up points.
I started out buying stocks--scared to death of options--then I "bravely" ventured into selling calls off of my long stocks. In this market I would hardly consider being a long time holder of anything. I would at least make reasonably anywhere from 5-10% percent option premium in maybe 60 days by selling a Covered Call. And that is extremely safe. Example, if you were to buy 100 shares of XYZ at $10 ($1000) and sell the right for someone to buy them from you at $50-$125, depending on the stock, at the price of $12.50, That's a good percentage income in maybe 60 days and it is risk free. Sure, if the price goes to $13 or $15 you might be upset to be selling for $12.50, but it is still a good profit in a short period of time. If your stock goes down you will have lowered your costs basis and you still have that stock you bought. So lighten up and go buy another stock! (With EDUCATION you will learn to close option positions and adjust, roll them up and out, etc., and perhaps that stock you fell in love will never be pulled away from you. Oh...actually...never ever fall in love with the stock. They are disloyal and fickle as a....well, just be ready to sell for a profit.) All that is to say, different personalities have different trading styles. Btw, I didn't mention the dozens and dozens of spreads and types of spreads, too. Most such strategies have minimum risk. Something is profitable out there, but first you need to learn about it.
178 points
KenTrester answered 11 months ago …
The most important thing is not to put it all in one place. Diversification is the key.
Because you're new to the market, you might want to try something like an Exchange-Traded Fund, or an ETF. An ETF is a basket of stocks from the same sector or stocks from an entire index, which means you don't have to worry about picking individual names.
SPDRs, such as the S&P 500 SPDR (SPY) are forms of ETFs, and you can buy both just as easily as you would a stock.
Buying call options is also a good strategy, too, because you can profit just as you would when a stock's value increases, but options are often only a fraction of the cost. As you're learning, long-term options, or LEAPS, are the better vehicle for you because they offer more time before expiration.
If you want to learn more, you can click here to read a more in depth article I wrote: http://www.optionszone.com/learn-more/ken-trester/make-short-term-money-with-long-term-options.html.
And be mindful of commission costs for each transaction because they can eat into your capital very quickly.
339 points
Sensei answered 11 months ago …
All of the answers here are excellent but they've neglected to ask two very important questions ... How old are you? 25? or 65? And ... What is your annual income? $ 25,000? or $ 125,000? (Well, you get the idea.) The correct answer to your question depends on your answers to those.
You've said you have NO experience in the (stock) market and that his is your ONLY $ 12,000. I'll assume that your debt is paid off - otherwise, see seyobnats answer above. (Yes, when you assume anything you make an "ass" of "u" and "me", but we have to start somewhere.)
I don't mean to discourage you, but it is important to understand that ...
A stock carries RISK - risk of LOSS!!
And this is primary. If your income is high ($ 125,000), you can afford the loss because you can "earn" it back in cash flow. You can afford the risk. Similarly, if you're young (25) you can afford to take the loss because you have a lifetime to make it back. Again, you can afford the risk. But the older you are - particularly if you're near "retirement age" - and/or the less cash flow you have, the less risk you can afford to accept. So, think about it ...
If you made the investment(s) and you lost it all (or a substantial part of it), what would happen? How would you feel? You have to be prepared to lose, financially and psychologically. If you can't live with that ... if losing any part of your $ 12,000 is not completely acceptable (because you're too old to make it back or because you don't earn enough to absorb the loss), then put your money in CDs. Period. Because I can guarantee that somewhere along the line, you WILL lose. And if that "somewhere" happens to be at the beginning of your investment career, you'll be immediately discouraged and "quit" ... and that is a recipe for a disaster. You must have "staying power". You must stay in the game. And with such a small initial amount, I fear that you will leave the game in the early innings.
IF (big "if") you're comfortable with the idea of losing from time to time, then I suggest you start "small" - no more that 1/3rd of your capital - and see how that goes.
I suggest you stay away from sophisticated things like SPDRs, etc. until you understand how the market works and what they are. As you become more comfortable (and more educated - sophisticated - you can increase your exposure. But before you get into things like short spreads, you'd better know the difference between "the bid" and "the ask". Again, you see the point. Get educated, especially at places like this.
As others have commented, use The Tycoon Report which frequently gives good recommendations and this site which has excellent advise from people who are actually "doing it". Begin by following their advice.
Investment services can be very good but, as others have indicated, some of these are hype. Look at the ones that people here use most often (e.g. TrendRider.) As Henry Ford used to say about the quality of his cars, "Ask the man who drives one." They can also be expensive for someone with only a small amount to invest.
Also remember that they're not right all the time either. Chris Rowe (who does TrendRider) has an 80% success rate. That's phenomenal. But it also means he's wrong 20% of the time. Going back to my earlier question ... If your first foray in the market was one of his "wrong" recommendations, how would you feel? Unless you can accept that loss and try again, you don't belong in the stock market.
Nowhere is the expression "Don't get mad; get even!" more true than in the stock market. If you're not young enough to accept the potential loss ... if you don't make enough to afford the potential loss ... if you don't have the emotional and psychological imperative to live with losing from time to time ... if losing means you won't be able to buy next month's groceries ... if ... if ... if ... then put your money in CD's. You may never get rich from that - but you won't starve either.
379 points
dustbusterz answered 11 months ago …
well ok, i think these guys above have said nearly everything . they give sound advice.
first thing is always have an investing plan. know how you will invest, where you will invest, and most importantly, how and when you will get out if things go on the wrong side of the tracks. so have a trailing stop loss in place so you can get out . i suggest something like 15 to 20 % behind the current price of the stock(minimizing losses).
the next thing to think about is what companies will do well in this type of market. usually a blue chip stock would be a good choice. but lets be looking for things people need (and will be replacing ) no matter what the economy is doing . food stores come to mind(Kroger would be a wonderful place to start your research). Auto parts stores could be another place to be looking since people will be holding their cars longer(and these cars will need replacement parts).If your looking into medical that might be a place to research because our population is getting older and more people will need medical care.
Companies that provide support services to other companies(i.e. those that advice how to survive in a down market) their services will be in larger demand. Look for alternative transportation such as am track or something like this since companies will want to find cheaper ways to ship their supplies. this should get you going in the right direction. don't over look investments in other Countries as some are in up trends while we are stagnant.
3680 points
MNSL answered 11 months ago …
I think you can learn lot of things from the above answers. I like to add some more.
I think first try to learn as much as possible.
Please do not overpay for any assets.
Always try to avoid hot markets before it burst.
In today’s investment world, you can lose your entire money. So you must make sure that you are going to deal with good banks, good brokers etc.
Some will try to promote their investments. Therefore, you must be able to understand type of investments before you put in it. Invest in businesses that you know.
Nobody can predict market correctly. Do not always relay on some websites and top investment bankers. Once they build up investment holdings, they will tell every Tom and Harry to buy their products. You have to do you own research.
I can remember some of these bank guys in some countries always tried to sell forcefully insurance instruments, credits cards, investments in funds etc without any good knowledge .about how investment world works. Of course, some guys are having houses more than one. So they always told their customers houses prices will be double in next two years. So buy more and more houses. We know what happened to property markets and some funds.. Some funds have frozen. now.. Poor savers cannot withdraw their money.
More than that, these banks and financial institutions have invested those public money in sophisticated instruments, such as swap and credit derivatives link to world property market and commodity. I doubt poor savers will get their money back from some banks. I do no think there will be value for some instruments such as capital note, warrants, derivatives and some assets now.
Now these some investments banks are struggling due to over exposure to derivatives and property market.
I think in next stage banks and financial instructions that over exposure to commodity will burst and finally we will see bottom in the financial sector towards end of next year. They want to safeguard their commodity funds and also they want to protect their investors in their funds and they are telling bull market in the commodity will last for 20 years.
Only intelligent investors identified current bear market for the commodity market and they sold almost everything from oil to grain, palm oil, metals, rubber etc.
I think next commodity bull market will begin in 2011. That also depends on the world economic growth rate.
If you want to become successful investor, please try to learn everything. Other wise you will lose your money. No markets will go straight up. Same way markets will not continually go down. You will see more volatility now. than those days. Because you can see more players, different sophisticated instruments, 24X7 online facility in the markets now.
