Archive for July, 2008

Risk aversion should be properly directed

  Date Monday, July 28th, 2008

Buying and holding, in this market especially, is a risk that should be avoided.  www.aestocks.com has posted consistent and steady returns for the past four years.  Many investors unfortunately think of an active system as risky, and therefore avoid it for something they see as more conservative.  A solid active system like AEStocks.com actually limits exposure to the overall market fluxuations, which proves to be a huge advantage.  If you are running across a minefield; would you rather run the length of a football field, or dash 10 yards and then move to the sidelines?  Short focused efforts, with the properly safeties built in (via limit orders, trailing stops, etc), can greatly reduce your risk when dealing with stocks.  Look closely at your trading strategy to see if your natural sense of risk aversion is actually sending you through a much longer minefield.

Weekly Market Wrap-up

  Date Friday, July 25th, 2008

The actions in the market this week seems to indicate that investors are uncertain as to which way to move.  Oil and Gold both finished the week lower (-5% and -3 respectfully).  The VIX moved down a point to finish under 23.  The DOW and NASDAQ finished flat at -1.5% and 0.8% for the week.  These indicators seem to point to slightly increased confidence, but are offset by the flat return in the equities markets.

AEStocks.com finished the week up 37% - Yes, another stellar week in spite of what the overall market is doing.  We have 11 stock picks for next week.

 

Not your father’s market

  Date Monday, July 21st, 2008

The stock market used to be a place of limited access to investors.  Accessibility to research was even more limited and restricted then access to the market.  It is most unfortunate that this has lent to the way most people see the market today.  The limited nature of this thinking has been so ingrained over the years, that many are not even looking into the field today at all.  This mentality must be shaken off, in order to experience real and solid gains that are available to everyone through the equities markets.  Online brokers make buying and selling stocks easier then setting an alarm clock.  Access to research information in order to find which stocks to buy and sell is available all over the internet.  www.aestocks.com is one of the top sites offering amazing short term stock recommendations.  The ease and accessibility of market and stock information should completely alleviate any apprehension regarding managing your own stock portfolio.  Be involved in your portfolio, and reap the rewards.

Weekly market wrap-up

  Date Friday, July 18th, 2008

This week confidence moved back into the markets.  Oil and gold finished the week lower, as did the VIX at 25.  The VIX finished the week 2 points lower, when combined with the other indicators demonstrates a stronger look to equities. 

The DOW and NASDAQ even finished the week positive, at 2.6% AND 0.8% respectively.  www.aestocks.com finished another week with double digit gains - 10.3%.  This comes on the back of a 43% gain last week, and 16% the week before that.  AEStocks.com is up 108% for the past 30 days.

Next week is very busy, as far as earnings go.  The confidence built this week, will continue to drive the markets bullishly in the week to come.

How many stocks belong in your long-term portfolio?

  Date Thursday, July 17th, 2008

Seven.  Having this many stocks, spread out among different sectors, is the perfect number to have on your long term side.  This allows you to benefit from growth in each of the major sectors, and still be able to track them weekly.  Many investors think that they have to have several stocks to be diversified, but this redundancy among several sectors only serves to hurt their positions because no one can devote the time needed to maintain thirty or more hours a week.  By being able to track your stocks, since there are only seven to watch, you can focus on the best in each sector.  Another point is that after a certain number of stocks, you reach a point of depreciating returns due to the fact that they all will not be top performers in their sector.  This will take away from the seven that you have as the solid gainers.  Being properly diversified across sectors is far better then being diversified within the same sector.


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