China Starts Bottom Picking — Should You?
In order to secure its standing in the commodities market when the economy does eventually recover, the Chinese sovereign wealth fund will be deploying up to $200 billion in new purchases.
A Great Move
China isn’t buying the minerals or commodities themselves, but instead companies that help find or refine the minerals for use. Remembering back to [...]
Why Dollar Cost Averaging is Your Best Friend
Today’s stocks are so incredibly cheap that the estimated PE ratios are under their historical average, and the market as a whole is already more than 50% cheaper than just one year ago. In just one credit crunch, the market was able to remove 12 years of growth from the stock markets – enabling late [...]
Trading Tips on Picking the Stock Market Bottom
Technical indicators for bottom-picking the current market are nearly nonexistent. Take a look at any chart of US indices, and you’ll find a constant ascent with very little backtracking. The lack of testing important technical levels during the 1990s will shed negligent light on traders attempting to pick this market’s bottom.
Minor Pullbacks Lend Little [...]
Want Guaranteed 8% Gains? Look to China
The best opportunity for investing in China has just opened, with the Chinese government pledging to do all it can to ensure that the 8% target growth rate is met in 2009. The current stimulus package, as it stands, will be expanded to add more money to the local economy and lower the value [...]
4 Reasons to Avoid Buying Inverse ETFs
The explosion of growth in the ETF industry has been both a boom and a bust for investors looking to make top dollar in the stock markets. Although the vast selection of ETFs gives investors more consumer choice, some ETFs are simply not worth trading. More and more traditional ETFs that help investors buy or [...]
Will Chinese Drivers Spike Oil Prices Again?
Automotive sales around the world have fallen sharply, even in China. Lower fuel prices and a sense of tightening credit have sent many car shoppers to the used lot – and many more into the same car.
The Car Economy
Ross Perot coined the term “car economy,” but it seems now that the same economy [...]
How a CD Hedges Perfectly Against Risky Investments
Post-credit crunch CD rates are contradictorily excellent for investors. Even after infusing the market with billions of dollars worth of capital, personal CD rates are at their best – mostly because the LIBOR rates (the rate at which banks lend to banks) has yet to fall. The only source of capital for banks [...]
5 Ways to Reduce Your Portfolio Costs
A global recession has every investor looking for ways to reduce costs. From the number of times we visit fast food restaurants or how we regulate the home thermostat, it seems like everyone is beginning to track every dollar. With the markets in distress and retirement accounts taking a nosedive, it might be time to [...]
$275 Billion to Stem Foreclosures – Time to buy REITs?
President Obama introduced a new $275 billion program to help solve the foreclosure crisis in the United States. Foreclosures have opened up a huge supply in the housing market, ultimately driving down prices. Keeping people in their homes will lower the supply in the real estate market, which is thought to buck the trend [...]
Is it Safe to Buy Financial Stocks Yet?
Financial stocks have been downright pounded in recent months, as their holdings have been considerably devalued with foreclosure numbers growing higher and higher by the day. The financial sector as a whole (using XLF as the base) has dipped more than 75% since its peak in May of 2007. With what looks to be a [...]
