Tuesday, July 24, 2012

Stock Market Pendulum

Well, it certainly has been a gut wrenching roller coaster ride this week for investors. The news out of Europe just hit hard home here in the US and has given many investment people cause to reach for the tums rolaids. Just when everyone thought the European debt crisis was over here comes the next wave of bad news. It really has investors scratching their head and taking a selling off panic in their portfolio.. The mainstream on main street herd has just pulled out of the market thinking we are heading for a huge gillatine crash in both stocks and bonds. This is not true because if you are a smart investment guy,you are looking at the charts to see what they are showing you.. That certainly is a different picture of a simple market correction that is going to last a short few days. Any good trader knows to be a success in investment you have to jump in when everyone else hits the panic button on wall street. You do the opposite of what the herd does as a contrarian and your the one who gets rich.. If you play your games short and long correctly your going to make lots of money. So with that said about investments this week do yourself a favor and buy in heavy while the market sinks. Then when the reversal comes next week ride the wave to to crest and then sell off your stocks which is calked shorting the market. By doubling your profits this way you beat the market instead of the market beating you on your short game..For the long game I recommend buying solid dividend paying stocks and investment in bonds like Vanguard Total Equity Return.or Janus High Yield Investor to hedge your risk.  Thus you beat the market and make.money no matter which way the markets swing up or decline.. Hope that this helps everyone to make a truck load of dough..
Have a Great a Day...

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