The SADDEST, day of all,

And the one,, the rest of the world had awaited.

Has come to pass.

WE have come to FIGHT, with ourselves,,

over our prosperity.

And, folks, THAT has become,, our downfall.

That,,, and GREED,, and we are known for both.

How do you pick off AMERICA?

COUNT on ,,

it's STUPIDITY

Then ,, hope like hell ,, we do not become "Americans"

Because, we will.

Internal, or EXTERNAL,,
I BELIEVE,, in the

"American people"

When, and IF,, they EVER get Their head out of their ASS.

Comments: View Comments |  Thursday November 11, 2010

The first rule in beating the market, is do not do what the market does. Maybe, do LIKE the market does, but not WHAT it does.

Why? Because you can not buy in cheap enough. Yes, you might make gains on it, and well you should. But, fact is, BEFORE you bought, future gains were priced in. And, more than 85% of the time, there will be a market retrenchment. So, for you short term traders, you are at a disadvantage. While you may be at a short term gain, IF, you time the market correctly, you will still lose to the long term investor, who will recognise the fact the market over-priced a single stock based on a short term outlook

Take gold for instance. There is a case that says, despite the huge run-up in gold prices, that gold is still a good buy. And, I believe it is. Too many smart minds are on that band-wagon.
Inflation is a sure bet, the US dollar, is all but dead and buried, and gold may be the next REAL currency. It certainly qualifies on the basis of scarcity. But, for one thing.

Everybody wants it, and only a few can have it. And, while they are all concerned over how to get gold, what should YOU do. Let them fight it out, and pick the next few items, they will need, while the prices are much cheaper on them.

The next best thing to money, or gold these days is silver. Also a measure of monetary wealth, and selling for a discount (a big one). But, less noticed, it can rise, at a rate that far surpasses gold, because GOLD is the measure. Well, while gold slowly rises, silver has been on a tear.

And, not just silver. Do you know that several stocks, some of which are silver related and some not, are SERIOUSLY out-performing gold right now? For instance, John Deere (DE) is up close to 70% this year, while GOLD is pushing maybe 25%, depending on how you invested it.

And, here is the shocker of the century. Believe it or not, for the first time in history, to my knowledge, there is a possibility, that CORN, will surpass the gains of gold and silver!

So, what does a smart investor do?

STAY UNDER THE RADAR. Yes, pick a few gold stocks, but limit that, and hold on. Pick a few close relatives, and hold them LONGER. If corn is the new gold, then maybe DE is a buy, rather than corn itself.

Smaller names, that beat the market as a whole, is the sole trick to market beating results. But, there is one caveat to that. You also need the big, and secure. How many companies will outperform IBM this year? A whole bunch. But, IBM, is dollars in the bank. Now, and later. And, if the market takes a dump, in time, you get those dollars back.

So, in the briefest of statements, beat the market, by buying, close to, but not exactly as they do. You gain, on their gain (and are LIKELY to beat them). Following a herd, can only get you beat, in the end.

Play market timing, but not to the extent of a short-term trader.

Balance your portfolio. Put a HEALTHY dose of RISK in it, but protect yourself there too. Not following the herd can be expensive in the short-run too. Put some SAFETY, in your portfolio too. Slow and sure, will win some races, but not most of them.

But, you can take this to the bank too. Being like every one else will COST you money. Especially, in the short term..

I don't know why, and I can't explain it. But, SIMILARITIES, to a good trend, will generally out-perform the good trend.

Right now, agriculure, is a big trend. Potash escaped the BHP take-over bid,, maybe. Does that make the element potash to be less in demand. Does that make stocks that produce that, good investments right now?

You could follow, big money, and say it will happen. Dollars to donuts, BHP, will invest in it's own mine (or potential mine), and give Canada, the BIG bird.

I like BHP, because it has the money and CLOUT, to get things done. Do NOT, go "piss into the wind".

Recognise potentials, invest in them. And, then, invest in what can beat them. Big, is a liability, in a stock market race of share price gains

Then again, slow, and steady will win some races.

I can probably beat the returns on BHP, for a long time to come, and never lose a dime. But, in the end, I have to know this too. No matter how good MY returns are, I could NEVER buy Canada. And, guess what. At the rate that BHP is creating WEALTH, it just MIGHT be able to do that.

It is a double edged sword. Sometimes you beat the market, by going against it. Sometimes you have to see, the world is "for sale' to the highest bidder.

Sometimes you have to look at the balance sheet. Who has the money? Or could have?

And, the answer to that is GE. And, what does GE have over BHP, besides a lower stock price? Aside from dividends, which fluctate, GE does spin off stocks, at a fairly good rate.
Enough to make the stock a BUY, not to mention, a cheap stock price.

Yes, GE, please, get out of financials, and DO, what you DO so very well. Provide the ESSENTIALS, of a better life for all.

If you want GAINS, you have to stay "under the radar" and you can beat most any of them. But never kid yourself, Any BULLY on the block, can take you out, in a moments notice.

Don't fight money. Make money, on money. Play the short term trends, but as a long term investor. And, while you can beat them, for how long?

Smart money, is a good hedge. Take both sides, and reap "like hell" while you can.

Comments: View Comments |  Wednesday November 3, 2010