When markets gap around they get natural retracements creating volatility and if you look at a simple 5 day chart you can spot likely retracements. An example is yesterdays gap higher and todays pullback which will likely test the area it gapped from. News becomes irrelevant and pricing takes over as valuation becomes a confusing … Read more
Mutual funds as a group perform badly over the longer term. Most cannot out perform the share index furthermore, a mutual fund is considered good if it reaches double digit gains. If you take into account the effect of inflation on growth, mutual funds don’t look so attractive and the risk is high, … Read more
Mutual funds overall return poor results. A good one may return 10 – 12 compounded but with inflation, that’s not much and on the risk side 30% losses or more can occur and they can last for years! Fact is most don’t even out perform the index, there are better alternatives with lower risk … Read more
Statistics show that the average family in the US has a staggering $ 9,000 worth of unsecured debt. This is mostly credit card debt due to the rising trend of people living beyond their means in a desire to have everything now. Going without and saving up seem to be two very out moded ideas … Read more
Can you make good gains in stock and mutual funds? Well the facts suggest you cant and the risk reward is against you. If you do then you don’t make much. Mutual funds simply are a bad investment and with soaring oil prices choking economic growth the near term future is bleak. Let’s look at … Read more