Do to the Holiday there will not be any new content for Sunday!
Have A Great Weekend!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
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Interested? Please become a follower
Saturday, May 29, 2010
Thursday, May 27, 2010
Mutual Funds Continued... Aggressive Growth! Growth! And Value Funds!
First off I would like to say Yeah Buddy!! for the phenomenal show the Stock Market put on for us today! That is one up for the good guys! One more push up for an early retirement! Sorry I'm a little excited... Now lets move onto the main attraction Mutual Funds.
Today I’m going to cover a broad definition of what an Aggressive Growth, Growth, and Value Funds consist of. You will see a nice list of the 3 Funds below.
Aggressive Growth Fund: This type of fund takes on higher risk for greater reward. An Aggressive Growth Fund will consist of companies that have great potential for rapid growth. They may focus on small companies that have recently gone public, individual sectors, or hot trending stocks that just came out with a great new product or service. Other things that may occur are frequent trading for gains, using leverage, options trading, as well as shorting stock outright (betting a stock will go down). The reason behind this type of fund is solely for capital appreciation. This type of fund is not meant for the risk adverse, but if you want the potential to trounce the averages in the stock market and make some serious money and don’t mind the high volatility than this is your ticket for a great ride!
Growth Fund: Growth funds are similar to an Aggressive Growth Fund as it is geared towards capital appreciation. However, Growth Funds tend to back off the risk and volatility compared to the extreme Aggressive Growth Funds. The difference in risk and volatility lies in the way the money is invested with reduced leverage and less trading frequency, but still tend to invest aggressively in small and mid cap companies with great potential. These are great funds to build wealth and can be used by a majority of investors. This type of fund still holds a great deal of risk. In my opinion the reward definitely outweighs the risk.
Value Fund: Value Funds consist of companies that have been determined to be out of favor by the stock market and have reached prices of value. Value as in the price compared to the fundamentals of the underlying company. Many of the so called Value stocks pay dividends as income to investors. The companies that are selected in a Value Fund tend to be steady growers that have lost their way. They may have slowed down in growth, are cyclical to the economy, may be in the middle of a restructuring turnaround, or have been taken down to low price levels do to short term negative news. hint... (BP which pays a 7.9% Dividend) This type of fund is great for the conservative investor since the dividends help prop the stocks up during bad times and thrive when the market recovers with capital appreciation. This fund is welcome to all!
For Sunday we will cover the last bit of Mutual Funds. I will explain what to look for in a funds track record, the expense ratio, the volatility, and a few other odds and ends.
Also, if you have a topic that you want me to cover Please... let me know. I'll be happy to answer your investing questions.
Happy Memorial Day!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Today I’m going to cover a broad definition of what an Aggressive Growth, Growth, and Value Funds consist of. You will see a nice list of the 3 Funds below.
Aggressive Growth Fund: This type of fund takes on higher risk for greater reward. An Aggressive Growth Fund will consist of companies that have great potential for rapid growth. They may focus on small companies that have recently gone public, individual sectors, or hot trending stocks that just came out with a great new product or service. Other things that may occur are frequent trading for gains, using leverage, options trading, as well as shorting stock outright (betting a stock will go down). The reason behind this type of fund is solely for capital appreciation. This type of fund is not meant for the risk adverse, but if you want the potential to trounce the averages in the stock market and make some serious money and don’t mind the high volatility than this is your ticket for a great ride!
Growth Fund: Growth funds are similar to an Aggressive Growth Fund as it is geared towards capital appreciation. However, Growth Funds tend to back off the risk and volatility compared to the extreme Aggressive Growth Funds. The difference in risk and volatility lies in the way the money is invested with reduced leverage and less trading frequency, but still tend to invest aggressively in small and mid cap companies with great potential. These are great funds to build wealth and can be used by a majority of investors. This type of fund still holds a great deal of risk. In my opinion the reward definitely outweighs the risk.
Value Fund: Value Funds consist of companies that have been determined to be out of favor by the stock market and have reached prices of value. Value as in the price compared to the fundamentals of the underlying company. Many of the so called Value stocks pay dividends as income to investors. The companies that are selected in a Value Fund tend to be steady growers that have lost their way. They may have slowed down in growth, are cyclical to the economy, may be in the middle of a restructuring turnaround, or have been taken down to low price levels do to short term negative news. hint... (BP which pays a 7.9% Dividend) This type of fund is great for the conservative investor since the dividends help prop the stocks up during bad times and thrive when the market recovers with capital appreciation. This fund is welcome to all!
For Sunday we will cover the last bit of Mutual Funds. I will explain what to look for in a funds track record, the expense ratio, the volatility, and a few other odds and ends.
Also, if you have a topic that you want me to cover Please... let me know. I'll be happy to answer your investing questions.
Happy Memorial Day!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Tuesday, May 25, 2010
Watch For Stocks That Are Up On A Down Day!
Goldman Sachs is up for the day! Keep an eye on a stock that shows strength on a down day. Usually there is some underlying positive that can send a stock much higher once the market becomes positive. Goldman Sachs was just an example of what to look for in future investments. Fund Managers invest for the future and they start early before an uptrend occurs. When a stock is up on a down day usually indicates that there is some Institutional buying interest and this special situation shouldn't go unnoticed.
Also, when the stock market opens down and makes a large move to the upside such as today, this is a positive sign that the market may be becoming more optimistic about the current price levels, which means that the tides may turn shortly from negative to positive. I'm an Optimist so you know I'm going to go with the second option of the market turning positive. I've had enough of these Negative Nancy down days. I'm ready to roll to much higher ground!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
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Also, when the stock market opens down and makes a large move to the upside such as today, this is a positive sign that the market may be becoming more optimistic about the current price levels, which means that the tides may turn shortly from negative to positive. I'm an Optimist so you know I'm going to go with the second option of the market turning positive. I've had enough of these Negative Nancy down days. I'm ready to roll to much higher ground!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Monday, May 24, 2010
New To Investing? Invest For Fun! Test Your Skills At Marketocracy
Hello,
Thought I would put this out here. If your new to investing and wish to test your skills check out marketocracy.com I have been using this investment site for over 3+ yrs and it's a great way to test your investing ideas without using your own money. At Marketocracy you will be able to create your very own mutual fund. You will start out with $1,000,000 to invest. You will be able to track your progress and see your rankings against other investors. It's a phenomenal learning tool! Give it a shot!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Thought I would put this out here. If your new to investing and wish to test your skills check out marketocracy.com I have been using this investment site for over 3+ yrs and it's a great way to test your investing ideas without using your own money. At Marketocracy you will be able to create your very own mutual fund. You will start out with $1,000,000 to invest. You will be able to track your progress and see your rankings against other investors. It's a phenomenal learning tool! Give it a shot!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Sunday, May 23, 2010
Why Your Age Is A Factor When Selecting A Mutual Fund
Last post I mentioned that your current age should be considered when selecting a Mutual Fund. Here is my reason that age matters. When you’re first starting out in your early 20’s you have more time to make mistakes. That being said you can invest more aggressively and take on more risk than someone in there 30’s, 40’s, and 50’s.
In my opinion if your risk tolerance allows it, investing aggressively in your early 20’s gives you a great advantage to building wealth rapidly early on so that later in life you can reduce your risk and become less aggressive as you reach retirement. Time is on your side!
As you continue on the age spectrum you will gradually reduce your risk. In your 20’s and 30’s you’re looking for capital appreciation, which means building your wealth. In your 40’s you still are looking for capital appreciation, but you are getting closer to retirement and you can’t take on the same level of risk since you have less time to recover any losses your portfolio may incur if the market happens to take a dreaded turn to negative town.
Lastly, in your 50’s you’re looking to preserve your capital. You have had the opportunity to build wealth and now you are looking to have that money last into retirement. Your goals and objectives should change over time. Build wealth early, preserve wealth near retirement, and use your wealth as income during retirement.
Now that we all have determined are age we must select the right Mutual Fund to invest in. First we must briefly cover the 3 main types of Mutual Funds listed below. These are Equity Funds, Fixed Income Funds, and Balanced Funds.
Equity Funds invest in stocks and are said to carry the most risk. Equity Funds carry higher risk, but have the potential for higher reward.
Fixed Income Funds invest primarily in bonds and other forms of debt to create income from the underlying investment. These are great for people who are approaching or currently in retirement.
Balanced Funds as you may guess invest both in Equities and Income producing products. These types of funds are suited for those who want less risk but still want to have some capital appreciation.
Hopefully, this gave everyone a better idea of factoring in age into your investments. Your age matters. Invest for your age!
Thursday I will cover a few different funds that you may have heard of- Aggressive Growth, Growth, and Value Funds.
Have a wonderful Sunday!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
In my opinion if your risk tolerance allows it, investing aggressively in your early 20’s gives you a great advantage to building wealth rapidly early on so that later in life you can reduce your risk and become less aggressive as you reach retirement. Time is on your side!
As you continue on the age spectrum you will gradually reduce your risk. In your 20’s and 30’s you’re looking for capital appreciation, which means building your wealth. In your 40’s you still are looking for capital appreciation, but you are getting closer to retirement and you can’t take on the same level of risk since you have less time to recover any losses your portfolio may incur if the market happens to take a dreaded turn to negative town.
Lastly, in your 50’s you’re looking to preserve your capital. You have had the opportunity to build wealth and now you are looking to have that money last into retirement. Your goals and objectives should change over time. Build wealth early, preserve wealth near retirement, and use your wealth as income during retirement.
Now that we all have determined are age we must select the right Mutual Fund to invest in. First we must briefly cover the 3 main types of Mutual Funds listed below. These are Equity Funds, Fixed Income Funds, and Balanced Funds.
Equity Funds invest in stocks and are said to carry the most risk. Equity Funds carry higher risk, but have the potential for higher reward.
Fixed Income Funds invest primarily in bonds and other forms of debt to create income from the underlying investment. These are great for people who are approaching or currently in retirement.
Balanced Funds as you may guess invest both in Equities and Income producing products. These types of funds are suited for those who want less risk but still want to have some capital appreciation.
Hopefully, this gave everyone a better idea of factoring in age into your investments. Your age matters. Invest for your age!
Thursday I will cover a few different funds that you may have heard of- Aggressive Growth, Growth, and Value Funds.
Have a wonderful Sunday!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Thursday, May 20, 2010
Want To Invest For The Future? Try Mutual Funds
Today I want to cover a great way for an individual investor to put their money to work. That way is with Mutual Funds. What is a Mutual Fund? A Mutual Fund is commonly referred to as a diversified portfolio of various stocks, bonds, and cash. Mutual Funds usually are typically offered by a Financial Institution and are managed by a professional fund manager.
The great thing about Mutual Funds is that they offer an individual investor to have access to a diversified portfolio at a fraction of the cost. What this means is that a Mutual Fund is a pool of money from many investors. The fund manager that runs the fund chooses to invest the money to which they see fit. Many Mutual Funds consist of 100 or more stocks, but there are some funds that have less.
The first thing to consider when investing in a Mutual Fund is your age. This will determine what type of time horizon you have to invest and build wealth. This also will reflect what type of Mutual Fund you should be investing in. Not all Mutual Funds are created equal! Some funds have higher risk/reward than others and you as an individual must find that risk tolerance.
This is all I have for now as this topic will be covered over multiple posts. Next time I will explain more into detail of how age plays a factor in investing. Also, we will cover what to look for when choosing a mutual fund.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
The great thing about Mutual Funds is that they offer an individual investor to have access to a diversified portfolio at a fraction of the cost. What this means is that a Mutual Fund is a pool of money from many investors. The fund manager that runs the fund chooses to invest the money to which they see fit. Many Mutual Funds consist of 100 or more stocks, but there are some funds that have less.
The first thing to consider when investing in a Mutual Fund is your age. This will determine what type of time horizon you have to invest and build wealth. This also will reflect what type of Mutual Fund you should be investing in. Not all Mutual Funds are created equal! Some funds have higher risk/reward than others and you as an individual must find that risk tolerance.
This is all I have for now as this topic will be covered over multiple posts. Next time I will explain more into detail of how age plays a factor in investing. Also, we will cover what to look for when choosing a mutual fund.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Wednesday, May 19, 2010
Stock Market Worries? What Goes Up Must Come Down!
To all my followers it seems that the passed couple of days have been rough for anyone that owns stocks. I'm here to tell you that everything will be just fine! The U.S. Stock Market has been on a run since March of 2009 and frankly as the saying goes WHAT GOES UP MUST COME DOWN! Markets move up and down and there will be corrections along the way. I'd rather see the stock market pull back gradually than what we experienced in 2008.
Europe is playing a major role in dragging the U.S. Equity market down. Please don't be discouraged because the best time to buy is when you feel awful about the stock market. Invest in companies that have good fundamentals. What I mean by that is companies that have good earnings, little debt, possibly a dividend, great management, and a optimistic outlook on future business.
Many companies have been sold off way to far and warrant higher stock prices. Stay optimistic and in the end you will be the one living comfortably in retirement!
Come visit tomorrow as I will have new material on what to look for when choosing a Mutual Fund for your 401K or other Retirement Fund.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Europe is playing a major role in dragging the U.S. Equity market down. Please don't be discouraged because the best time to buy is when you feel awful about the stock market. Invest in companies that have good fundamentals. What I mean by that is companies that have good earnings, little debt, possibly a dividend, great management, and a optimistic outlook on future business.
Many companies have been sold off way to far and warrant higher stock prices. Stay optimistic and in the end you will be the one living comfortably in retirement!
Come visit tomorrow as I will have new material on what to look for when choosing a Mutual Fund for your 401K or other Retirement Fund.
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Sunday, May 16, 2010
It’s Never Too Late To Start Investing!
Today I want to talk about investing for the future.
Why do we invest? There are many reasons to invest your money. The most common reason that comes up in a conversation is Retirement. I’m here to tell you that investing for the future is essential. I here a significant amount of people in the media and everyday life stating they don’t have enough money to invest. Yes we all have certain financial obligations, but that isn’t a good enough reason to not save a little money for a rainy day.
The key to investing and saving for the future is to simply start. Starting is half the battle. Not starting could cost you 100’s of 1,000’s of $$$ down the road. Procrastination is not part of your future financial well being! It’s never too late to start!
The figures below are a few calculations I compiled to show what just a few dollars invested over a set period of time can turn into a substantial amount of money. This displays how long term investing really adds up.
Interest rates are hypothetical and are not guaranteed.
Age: 20
Monthly Contribution / Final Nest Egg:
$40 $730,184.47
$80 $1,460,368.93
$160 $2,920,737.86
Invested (Yrs): 45
Retirement Age: 65
Interest Rate: 12%
Age: 30
Monthly Contribution / Final Nest Egg:
$40 $232,062.30
$80 $464,124.59
$160 $928,249.18
Invested (Yrs): 35
Retirement Age: 65
Interest Rate: 12%
Age: 40
Monthly Contribution / Final Nest Egg:
$40 $71,680.29
$80 $143,360.58
$160 $286,721.15
Invested (Yrs): 25
Retirement Age: 65
Interest Rate: 12%
Age: 50
Monthly Contribution / Final Nest Egg:
$40 $20,041.57
$80 $40,083.15
$160 $80,166.30
Invested (Yrs): 15
Retirement Age: 65
Interest Rate: 12%
These numbers show how the magic of compound interest works to your advantage. You might ask, what is compound interest? Compound Interest means that each time interest is paid, it is added to or compounded into the principal and thereafter also earns interest. Definition pulled from http://www.extension.iastate.edu/agdm/wholefarm/html/c3-05.html
Calculations came from an investment calculator. Feel free to input your numbers!
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
This calculation above was part of the reason I started to invest 8 years ago. $40 a month is definitely obtainable for most. For instance $40 a month could be 1 trip to a nice restaurant, purchasing a drink and a bag of chips at work daily, or eating out for breakfast on a routine basis. Yes these examples may not pertain to you, but think real hard of what you might give up for a chance of financial freedom in retirement.
Remember it’s never too late to start investing!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Why do we invest? There are many reasons to invest your money. The most common reason that comes up in a conversation is Retirement. I’m here to tell you that investing for the future is essential. I here a significant amount of people in the media and everyday life stating they don’t have enough money to invest. Yes we all have certain financial obligations, but that isn’t a good enough reason to not save a little money for a rainy day.
The key to investing and saving for the future is to simply start. Starting is half the battle. Not starting could cost you 100’s of 1,000’s of $$$ down the road. Procrastination is not part of your future financial well being! It’s never too late to start!
The figures below are a few calculations I compiled to show what just a few dollars invested over a set period of time can turn into a substantial amount of money. This displays how long term investing really adds up.
Interest rates are hypothetical and are not guaranteed.
Age: 20
Monthly Contribution / Final Nest Egg:
$40 $730,184.47
$80 $1,460,368.93
$160 $2,920,737.86
Invested (Yrs): 45
Retirement Age: 65
Interest Rate: 12%
Age: 30
Monthly Contribution / Final Nest Egg:
$40 $232,062.30
$80 $464,124.59
$160 $928,249.18
Invested (Yrs): 35
Retirement Age: 65
Interest Rate: 12%
Age: 40
Monthly Contribution / Final Nest Egg:
$40 $71,680.29
$80 $143,360.58
$160 $286,721.15
Invested (Yrs): 25
Retirement Age: 65
Interest Rate: 12%
Age: 50
Monthly Contribution / Final Nest Egg:
$40 $20,041.57
$80 $40,083.15
$160 $80,166.30
Invested (Yrs): 15
Retirement Age: 65
Interest Rate: 12%
These numbers show how the magic of compound interest works to your advantage. You might ask, what is compound interest? Compound Interest means that each time interest is paid, it is added to or compounded into the principal and thereafter also earns interest. Definition pulled from http://www.extension.iastate.edu/agdm/wholefarm/html/c3-05.html
Calculations came from an investment calculator. Feel free to input your numbers!
http://www.moneychimp.com/calculator/compound_interest_calculator.htm
This calculation above was part of the reason I started to invest 8 years ago. $40 a month is definitely obtainable for most. For instance $40 a month could be 1 trip to a nice restaurant, purchasing a drink and a bag of chips at work daily, or eating out for breakfast on a routine basis. Yes these examples may not pertain to you, but think real hard of what you might give up for a chance of financial freedom in retirement.
Remember it’s never too late to start investing!
Thank You,
Clay-
Have a Question? Send Questions to wheatleycsmk@gmail.com
New Content every Thursday and Sunday.
Occasional Stock Market Commentary during the week.
Feedback Welcome!
Interested? Please become a follower
Thursday, May 13, 2010
Stocks Trade In Negative Fashion/ What Really Makes Stocks Go Higher?
Not much to say about today's trading. The Market started in negative territory and showed some sign of hope during the middle of the day, but in the end the selling pressure continued as there wasn't anything to drive the market higher. The job market is still an issue and Kohl's the retailer department store came out with disappointing earnings. These are 2 negatives and with no real positive news to counter the bad there isn't really any reason for the stock market to go higher. Why are jobs a big deal? The reason is when jobs are created people spend more money to fuel the economy. The economy won't prosper until the job market becomes positive. Kohl's on the other hand shows exactly what people are spending. When consumers aren't spending money the retailers such as Kohl's profits are hindered by this. Yes Kohl's put out earnings that were better than analysts expected, but didn't meet the future earnings that the analysts wanted to hear. Information gathered through http://finance.yahoo.com/
Here is a little insight about the stock market. The funny thing about stocks is that the Large Institutions and Fund Managers invest for the future. They are the ones with a large portion of the money invested in the stock market. They don't care about what occurred or what has happened in the past. They want to know what is the outlook for the future. If the future is promising, that is where they are going to invest their money. Once the outlook doesn't match with what the Large Institutions and Fund Managers are looking for they find other companies to invest in. That is why you see stocks drop suddenly. The Big Money is pulling out their investment and has found a better opportunity elsewhere.
The Large Institutions control the stock market. This is a fact! The key to investing is to find out where the Big Money is investing and buy those companies to take advantage of the Large Institutional buying that occurs. The great thing about being a small investor is that you can get in and out of a stock much quicker than the Institutions. Really if you could be right half the time and invest before the Big Money has a chance to be fully invested you will make money. It can take some Large Institutions weeks to be fully invested in one particular company. The reason behind that is in order for a Large Mutual Fund to perform and make people money they have to invest millions of dollars. They can't just buy all at once because the demand would be so great it would drive the price of a stock through the roof! For Example: A Fund Manager wants to invest $100 million in stock xyz. In order for them not to show others what they are doing they must buy stock over a period of time. So instead of investing $100 million all at once they may invest $5 million a day. That means it would take about 20 trading days or roughly a month to be fully invested. That is how Institutions work! In the end the small individual investor has the edge over the Large Institutions. You just have to obtain the right information and you can beat them every time!
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome! Ask me a question wheatleycsmk@gmail.com
Here is a little insight about the stock market. The funny thing about stocks is that the Large Institutions and Fund Managers invest for the future. They are the ones with a large portion of the money invested in the stock market. They don't care about what occurred or what has happened in the past. They want to know what is the outlook for the future. If the future is promising, that is where they are going to invest their money. Once the outlook doesn't match with what the Large Institutions and Fund Managers are looking for they find other companies to invest in. That is why you see stocks drop suddenly. The Big Money is pulling out their investment and has found a better opportunity elsewhere.
The Large Institutions control the stock market. This is a fact! The key to investing is to find out where the Big Money is investing and buy those companies to take advantage of the Large Institutional buying that occurs. The great thing about being a small investor is that you can get in and out of a stock much quicker than the Institutions. Really if you could be right half the time and invest before the Big Money has a chance to be fully invested you will make money. It can take some Large Institutions weeks to be fully invested in one particular company. The reason behind that is in order for a Large Mutual Fund to perform and make people money they have to invest millions of dollars. They can't just buy all at once because the demand would be so great it would drive the price of a stock through the roof! For Example: A Fund Manager wants to invest $100 million in stock xyz. In order for them not to show others what they are doing they must buy stock over a period of time. So instead of investing $100 million all at once they may invest $5 million a day. That means it would take about 20 trading days or roughly a month to be fully invested. That is how Institutions work! In the end the small individual investor has the edge over the Large Institutions. You just have to obtain the right information and you can beat them every time!
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome! Ask me a question wheatleycsmk@gmail.com
Wednesday, May 12, 2010
Nice Day For Stocks! Dow up +148.65 points to close at 10,896.91 (+1.38%)
Looks like we could be back on track. The past week or so has been brutal. I'm seeing a lot of money flow back into my favorites. Keep an eye on my suggestions. These are the market leaders! The companies that drive the stock market higher! Let's see if tomorrow we can keep the positive momentum going. Happy Investing!
AAPL- Apple up +2.17% today
WFT- Weatherford International (I really like this one) I personally own this company! up +2.90%
INTC- Intel up +3.64 % today
GS- Goldman Sachs (These guys will shrug off the SEC probe) up +3.68% today
CAT- Caterpillar up +3.15% today
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
AAPL- Apple up +2.17% today
WFT- Weatherford International (I really like this one) I personally own this company! up +2.90%
INTC- Intel up +3.64 % today
GS- Goldman Sachs (These guys will shrug off the SEC probe) up +3.68% today
CAT- Caterpillar up +3.15% today
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
Tuesday, May 11, 2010
Stock Market Holds On After Big Run Up!
Today was filled with lackluster trading throughout the day. Stocks opened up on the weak side but showed signs of life from the open up until around 2:00 p.m. All the sudden it looked as if the buyers ran out of steam and the market steadily came off the highs to settle in negative territory for the DOW down -36.88 (.34%) to close at 10,748.26 and down -3.94 (.34%) for the S&P 500. The NASDAQ stayed in positive territory at 2,375.31 up +.64 (.03%). I believe that the market is taking a breather and there may still be some worries about the outlook on Europe as Gold was up $10.90 on the day. Gold tends to go up when people are worried about the equity market. It's considered a safe place to keep your money in times of uncertainty.
(http://finance.yahoo.com/) figures taken from yahoo finance.
My outlook is still cautious, but today showed signs that the stock market may be stabilizing. All the big movers from yesterday such as Tech, Energy, and Financials took a step back. I personally believe that these particular sectors will outperform in 2010. My money is on Energy at this current moment as the rig count continues to increase in North America and crude oil is holding on even though the past couple of days hasn't shown great strength. The oil spill from BP has had a negative impact on the Energy sector and once they clean up the mess I think crude oil is heading higher. So I say continue to buy stock on weakness and never buy all at once!
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
(http://finance.yahoo.com/) figures taken from yahoo finance.
My outlook is still cautious, but today showed signs that the stock market may be stabilizing. All the big movers from yesterday such as Tech, Energy, and Financials took a step back. I personally believe that these particular sectors will outperform in 2010. My money is on Energy at this current moment as the rig count continues to increase in North America and crude oil is holding on even though the past couple of days hasn't shown great strength. The oil spill from BP has had a negative impact on the Energy sector and once they clean up the mess I think crude oil is heading higher. So I say continue to buy stock on weakness and never buy all at once!
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
Monday, May 10, 2010
Stock Market Volatility! My Take On Today's Stock Trading
Well today was a wonderful day to all that had their money invested in the stock market. The Dow Jones closed up 404.71 points or 3.90% coming in at 10,785.14 and the NASDAQ closed up 109.03 points to 2,374.67 up 4.81%. Lastly, the S&P 500 came in at 1,159.73 up 48.85 points or 4.40% according to http://finance.yahoo.com/
A great deal of the upside came from the EU rescue package of $1 Trillion to help save the Euro and settle investors of the European debt market. This helps keep money flowing and also put the short sellers up against the wall. Short sellers are people that bet against the market. This in turn creates buying from the shorts to cover their position of betting against the market and sends stocks higher. Don't get me wrong today was a great day to make money and take some profits, but the market is still very volatile and unpredictable in the short term.
In the near term I'm still very cautious about this market as I sold some stock into the strength of the market today. I believe the market will move back lower in the near future at least in some of the individual stocks that I follow. This will give me a better opportunity to buy at lower prices Today was a perfect example of why I enjoy investing. Investing can be fun and profitable at the same time. If your not having fun you must be doing something wrong! Everyday is different and you have to take it in stride.
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
A great deal of the upside came from the EU rescue package of $1 Trillion to help save the Euro and settle investors of the European debt market. This helps keep money flowing and also put the short sellers up against the wall. Short sellers are people that bet against the market. This in turn creates buying from the shorts to cover their position of betting against the market and sends stocks higher. Don't get me wrong today was a great day to make money and take some profits, but the market is still very volatile and unpredictable in the short term.
In the near term I'm still very cautious about this market as I sold some stock into the strength of the market today. I believe the market will move back lower in the near future at least in some of the individual stocks that I follow. This will give me a better opportunity to buy at lower prices Today was a perfect example of why I enjoy investing. Investing can be fun and profitable at the same time. If your not having fun you must be doing something wrong! Everyday is different and you have to take it in stride.
Thank You,
Clay-
If this was beneficial information or you would like to comment please do. I would like to hear what you have to say. Feedback Welcome!
Saturday, May 8, 2010
How To Get Started Investing In The Stock Market
So I recently was just asked in a previous post of where do I start to get into the market and how much money would I need to get into the game?
There are multiple ways to begin investing in the stock market. Here I will suggest a few common ways to start investing. One option would be to open an online brokerage account. Opening an online account is very easy to do and is a great way to learn about stocks because it provides you with the tools to do your own research and allows you to buy and sell stocks at your discretion. Some online accounts require a minimum deposit to get started. However, Sharebuilder is an online service that requires very little money to get started. They state there is “No account minimum open an account with any amount.” I personally have experienced their service and highly recommend someone that would like to start investing to check out ShareBuilder and with a fee of $9.95 a trade it’s a low cost way to get your feet wet. Another great online broker is Scottrade. I personally invest in stocks through Scottrade. To open an account requires a modest $500 min Deposit and trades are only $7.00. I would suggest if you want to trade individual stocks to start out with at least $500. If you invest with less then $500 the transaction fees of buying and selling stock add up rather quickly and may affect your return on investment. Other comparable online reputable brokerage accounts are E*Trade (no min for retirement account $500 min deposit $9.99 a trade), Fidelity (min deposit $2,500 as low as $7.95 a trade), and TD Ameritrade ($1,000 min retirement account $2,000 min non retirement account $9.99 a trade) to name a few. I have only had experience with ShareBuilder and Scottrade so do your research to figure out which online brokerage best serves your needs. Online trades are subject to change and may very in prices depending on your account balance.
Another way to invest would be through your bank. Banks offer many of the same types of services that online brokers provide and banks have the added benefit of building the one on one relationship that many desire. This is a great way for people that are uncomfortable investing online to have exposure to the stock market. Plus when you have a question about investing you can pay a visit to your local branch and do your banking at the same time.
The last common way to invest would be through your employer in a retirement account. Depending on your employer they may match your contribution up to a certain percentage of your income. This is definitely a great advantage and gives you jump start on building wealth. I tell everyone that I come into contact with to take advantage of the company match. IT’S FREE MONEY!!! Another advantage is that the contributions you allocate per pay period are tax deferred, which means you will not be taxed until retirement. This will also lower your taxable income and may put you into a lower tax bracket. And lastly if you happen to change jobs you can always take your money with you and roll it over into another account.
If you have any specific questions that I didn’t cover please comment as this was only a brief overview of ways to begin investing in the stock market.
Thank You,
Clay-
If this information has been beneficial feel free to let me know. This will give me a good sense of direction for future topics.
There are multiple ways to begin investing in the stock market. Here I will suggest a few common ways to start investing. One option would be to open an online brokerage account. Opening an online account is very easy to do and is a great way to learn about stocks because it provides you with the tools to do your own research and allows you to buy and sell stocks at your discretion. Some online accounts require a minimum deposit to get started. However, Sharebuilder is an online service that requires very little money to get started. They state there is “No account minimum open an account with any amount.” I personally have experienced their service and highly recommend someone that would like to start investing to check out ShareBuilder and with a fee of $9.95 a trade it’s a low cost way to get your feet wet. Another great online broker is Scottrade. I personally invest in stocks through Scottrade. To open an account requires a modest $500 min Deposit and trades are only $7.00. I would suggest if you want to trade individual stocks to start out with at least $500. If you invest with less then $500 the transaction fees of buying and selling stock add up rather quickly and may affect your return on investment. Other comparable online reputable brokerage accounts are E*Trade (no min for retirement account $500 min deposit $9.99 a trade), Fidelity (min deposit $2,500 as low as $7.95 a trade), and TD Ameritrade ($1,000 min retirement account $2,000 min non retirement account $9.99 a trade) to name a few. I have only had experience with ShareBuilder and Scottrade so do your research to figure out which online brokerage best serves your needs. Online trades are subject to change and may very in prices depending on your account balance.
Another way to invest would be through your bank. Banks offer many of the same types of services that online brokers provide and banks have the added benefit of building the one on one relationship that many desire. This is a great way for people that are uncomfortable investing online to have exposure to the stock market. Plus when you have a question about investing you can pay a visit to your local branch and do your banking at the same time.
The last common way to invest would be through your employer in a retirement account. Depending on your employer they may match your contribution up to a certain percentage of your income. This is definitely a great advantage and gives you jump start on building wealth. I tell everyone that I come into contact with to take advantage of the company match. IT’S FREE MONEY!!! Another advantage is that the contributions you allocate per pay period are tax deferred, which means you will not be taxed until retirement. This will also lower your taxable income and may put you into a lower tax bracket. And lastly if you happen to change jobs you can always take your money with you and roll it over into another account.
If you have any specific questions that I didn’t cover please comment as this was only a brief overview of ways to begin investing in the stock market.
Thank You,
Clay-
If this information has been beneficial feel free to let me know. This will give me a good sense of direction for future topics.
Friday, May 7, 2010
The Current Market at these levels
For all of you when investing in the near term, please be cautious of the current market. Today you may see a market to the upside do to the weakness of the past couple of days, however when the market moves down like it did usually there will still be some sellers at lower levels. So please don't get to excited and buy a lot of stock today. (Buy Incrementally) Some now! Some later! The European debt issue is still weighing on the US stock market.
Thank You,
Clay-
Thank You,
Clay-
Thursday, May 6, 2010
What A Unbelievable Day!!!
Wow what a day!
I have to talk about what happened today to explain what may occur when things go wrong. Yes the stock market was weak at the beginning of the day due to investors concerns about the European debt market, but later in the day a trader mistakenly put in a order to sell $15 billion worth of stock when he meant to sell $15 million. This caused the Dow and the rest of the indices to plummet all at once. Eventually, the losses were minimized from the low of the day, but stuff like this doesn't occur very often. This is when people need to go out and find stocks on the cheap and buy them on days like this. This day was a great opportunity for investors to get in at great prices. From one of my first posts I mentioned buying on weakness and this is one of those days. Yes a lot of the trading that occurred today will be cancelled due to the traders mistake, but it's a perfect example of what could happen at any given day. That's why as an individual investor you need to be prepared for days like this. Don't be afraid! Just buy the stocks that you have done your research on and are confident in their potential to increase in value. Usually your first purchase of a stock seemingly goes down. You never can be perfect on when to buy a stock. That is why you should buy incrementally. For example if you want to by 100 shares of a stock buy 25 shares to start then see what happens if it goes down more you still have money to invest more. That way lower prices are to your benefit. Also, companies that pay a dividend are always good in extreme down days because that is where a lot of the fund managers tend to put their money in for the short term until the market becomes somewhat stable.
I will continue with my evaluation of stocks that I like from the (Prediction Game) Cont... I have Intel (INTC) and Caterpillar (CAT) left to discuss. Also, for people that are just starting to invest stay tuned as I will be discussing topics for individuals that are just beginning to learn about investing and the stock market.
Thank You,
Clay-
I have to talk about what happened today to explain what may occur when things go wrong. Yes the stock market was weak at the beginning of the day due to investors concerns about the European debt market, but later in the day a trader mistakenly put in a order to sell $15 billion worth of stock when he meant to sell $15 million. This caused the Dow and the rest of the indices to plummet all at once. Eventually, the losses were minimized from the low of the day, but stuff like this doesn't occur very often. This is when people need to go out and find stocks on the cheap and buy them on days like this. This day was a great opportunity for investors to get in at great prices. From one of my first posts I mentioned buying on weakness and this is one of those days. Yes a lot of the trading that occurred today will be cancelled due to the traders mistake, but it's a perfect example of what could happen at any given day. That's why as an individual investor you need to be prepared for days like this. Don't be afraid! Just buy the stocks that you have done your research on and are confident in their potential to increase in value. Usually your first purchase of a stock seemingly goes down. You never can be perfect on when to buy a stock. That is why you should buy incrementally. For example if you want to by 100 shares of a stock buy 25 shares to start then see what happens if it goes down more you still have money to invest more. That way lower prices are to your benefit. Also, companies that pay a dividend are always good in extreme down days because that is where a lot of the fund managers tend to put their money in for the short term until the market becomes somewhat stable.
I will continue with my evaluation of stocks that I like from the (Prediction Game) Cont... I have Intel (INTC) and Caterpillar (CAT) left to discuss. Also, for people that are just starting to invest stay tuned as I will be discussing topics for individuals that are just beginning to learn about investing and the stock market.
Thank You,
Clay-
Wednesday, May 5, 2010
(Prediction Game) Continued... GS
Continuing on with Goldman Sachs (GS) another one of my favorites!
Goldman Sachs is in the investment banking business, they manage investments and provide securities to private individuals, financial institutions, governments and corporations. The first thing I would say from watching this company over the past few years is. “Never bet against Goldman Sachs.” GS is a serious money maker. They know how to perform in all markets. Yes right now they are under pressure by the SEC. However, I do believe they will get past this accusation of offering a product that was said to mislead the investors involved in the transaction. I don’t want to get into this because it’s very complicated. However, both parties are professional institutions and they should have done their due diligence and GS lost over $100 million on this transaction. Now onto the bright side of this company. Goldman reported great earnings this quarter and was shadowed by the SEC. They beat earnings consensus by a huge margin with $5.59 per share respectively. The consensus which means what the analyst expected was to be about $3.95 a share. This great earnings number also beat last year’s 1st quarter earnings by 64.9%. Not to shabby! Goldman has beat estimates for the last 5 quarters and I expect them to continue. With all the bad news at this time I recommend buying this stock on the cheap while the company is out of favor. For more information and added research go to www2.goldmansachs.com/
Thank You,
Clay-
If this information has been beneficial feel free to let me know. This will give me a good sense of direction for future topics.
Thank You!
Goldman Sachs is in the investment banking business, they manage investments and provide securities to private individuals, financial institutions, governments and corporations. The first thing I would say from watching this company over the past few years is. “Never bet against Goldman Sachs.” GS is a serious money maker. They know how to perform in all markets. Yes right now they are under pressure by the SEC. However, I do believe they will get past this accusation of offering a product that was said to mislead the investors involved in the transaction. I don’t want to get into this because it’s very complicated. However, both parties are professional institutions and they should have done their due diligence and GS lost over $100 million on this transaction. Now onto the bright side of this company. Goldman reported great earnings this quarter and was shadowed by the SEC. They beat earnings consensus by a huge margin with $5.59 per share respectively. The consensus which means what the analyst expected was to be about $3.95 a share. This great earnings number also beat last year’s 1st quarter earnings by 64.9%. Not to shabby! Goldman has beat estimates for the last 5 quarters and I expect them to continue. With all the bad news at this time I recommend buying this stock on the cheap while the company is out of favor. For more information and added research go to www2.goldmansachs.com/
Thank You,
Clay-
If this information has been beneficial feel free to let me know. This will give me a good sense of direction for future topics.
Thank You!
Tuesday, May 4, 2010
Monday, May 3, 2010
(Prediction Game) Continued... AAPL
The next stock I mentioned was Apple Inc.
AAPL-Apple Inc. The maker of computers (MAC), the iPhone the popular iPod, and the iPad to name a few. Apple is the industry leader in gadgets and always leading the way to new and improved technology. Their products are very user friendly and they offer a whole new world to how people interact and communicate with each other. If nothing at all their products are truly entertaining to the masses. As of April 20th Apple's current earnings report was phenomenal. (Earnings report occurs usually every 3 months and this is when a company goes into detail of how the business is doing and what outlook they have for the future. Earnings are a great way to find out how healthy a company really is. It's a must to pay attention to earnings reports when you own that company as this will give you an opportunity to evaluate the company to see if it will be a good investment in the future) Now Apples earnings were as followed. -the Mac computer showed a 33% volume increase from a year ago, the iPhone was up 131% from a year ago, and the iPod had a 1 decline from a year which they still sold 10.89 million iPods. Apple revenue was up 49% to $13.50 Billion and their profits up 90% at $3.07 Billion. With the new iPad that was just introduced to the market I believe it will add plenty of growth to the stock. Apple @ $261.60 is still cheap in my eyes and will power higher. For more information check out http://www.apple.com/ to see for yourself.
Thank You,
Clay-
AAPL-Apple Inc. The maker of computers (MAC), the iPhone the popular iPod, and the iPad to name a few. Apple is the industry leader in gadgets and always leading the way to new and improved technology. Their products are very user friendly and they offer a whole new world to how people interact and communicate with each other. If nothing at all their products are truly entertaining to the masses. As of April 20th Apple's current earnings report was phenomenal. (Earnings report occurs usually every 3 months and this is when a company goes into detail of how the business is doing and what outlook they have for the future. Earnings are a great way to find out how healthy a company really is. It's a must to pay attention to earnings reports when you own that company as this will give you an opportunity to evaluate the company to see if it will be a good investment in the future) Now Apples earnings were as followed. -the Mac computer showed a 33% volume increase from a year ago, the iPhone was up 131% from a year ago, and the iPod had a 1 decline from a year which they still sold 10.89 million iPods. Apple revenue was up 49% to $13.50 Billion and their profits up 90% at $3.07 Billion. With the new iPad that was just introduced to the market I believe it will add plenty of growth to the stock. Apple @ $261.60 is still cheap in my eyes and will power higher. For more information check out http://www.apple.com/ to see for yourself.
Thank You,
Clay-
Sunday, May 2, 2010
Explanation for the Stocks I like (Prediction Game) WFT
On Thursday I wrote about a few stocks that I like at their current price levels and now I will explain why.(I will post each stock individually over the next few days since I have limited amount of space to explain)
The first company I mentioned was (WFT) Weatherford International
WFT-Weatherford International. This is an oil service company. They supply products and services to the independent oil and natural gas producers worldwide. This company is attractive since it is tied heavily towards oil production. Currently oil prices have been on the rise. Since oil has sustained its current prices drilling has become more profitable. This in turn means more drilling will occur and WFT services will be required. With the rebound of oil drilling in North America and the huge potential for WFT in Iraq and other parts of the world I believe this stock has great potential to go higher in the near future from it's price of $18.23 that I recommended on 04/29/10 To learn more visit Weatherford's website at http://www.weatherford.com/
Thank You,
Clay-
The first company I mentioned was (WFT) Weatherford International
WFT-Weatherford International. This is an oil service company. They supply products and services to the independent oil and natural gas producers worldwide. This company is attractive since it is tied heavily towards oil production. Currently oil prices have been on the rise. Since oil has sustained its current prices drilling has become more profitable. This in turn means more drilling will occur and WFT services will be required. With the rebound of oil drilling in North America and the huge potential for WFT in Iraq and other parts of the world I believe this stock has great potential to go higher in the near future from it's price of $18.23 that I recommended on 04/29/10 To learn more visit Weatherford's website at http://www.weatherford.com/
Thank You,
Clay-
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