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What If You Were Down 27%?

The Dow Jones industrial average (DJIA) rose 72.37 points, or 0.4%, to 16,576.66 on the last trading day of 2013. For the year, the index of blue-chip stocks was up 26.5% — its best performance since 1995.   The media, can sometimes be our friend or our foe.  Unfortunately, because our lives are so busy we often just get snippets and sound bites of information about our investments and money issues.   When you hear the DJIA had a banner year, your first thought is often “did my investments do as well as the stock market?” Most investors have a very short memory of their original risk tolerance, goals, or objectives when they start analyzing returns on their money.   Without setting proper expectation, banner years in the stock market like 2013 can send you into the depths of unhappiness because you may feel you missed out on a golden opportunity.  However, what happens if you were down 27% or even 33.84% as ...

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Are Diamonds as an investment an alternative to the stock market and gold?

During a time when the only thing for certain seems to be economic uncertainty, have you considered investing in diamonds? For months now, you’ve watched your stocks and other investments see-saw while watching gold prices rise. Now, more than ever, is the right time for a diamond investment. After all, wouldn’t it be great to enjoy a diamond both to wear in a piece of jewelry and for investment purposes?! The diamond investment market has seen a robust recovery since the economic collapse devastated the luxury goods market just a few years ago. Numerous factors play into rising prices, but among the most significant is the recent news of De Beers cutting diamond mining production. With a marked increase in demand from China and diamond supplies simply drying up, De Beers has reduced production in order to extend the life of their mines. As a result, we expect to see prices continue climbing as the divide between supply and demand ...

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Some look to “The Stock Trader’s Almanac” to develop their investment strategy.

Growing up in Iowa “The Old Farmer’s Almanac” provided planting charts for those who lived on the farm giving advice as to when to plant as well as information about weather forecasts for that years growing season. Equity traders generally have their own version “The Stock Trader’s Almanac” to provide educational information on investing.  According to “The Stock Trader’s Almanac” over the past thirteen and a half years, starting in September of 1997 through February of 2011, if you has bought the Dow Jones Industrial Average at the end of the last trading day of each month and sold it at the end of the first trading day of the next month, you would have ended up with a total gain of 6,021 points for just 162 days of exposure to the market.  Additionally, if you had traded on the 3,215 other days, you would have lost a combined 1,604 points over the same period.  However, we do not recommend ...

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The Stock Market Crash Of 2010

I don’t buy it. I’m sorry, but I just don’t buy what I have been reading about this recent blip in the stock market that everyone has been talking about across the country. I believe that within the next 12 months we will find out there is more than meets the eye about this story and what exactly happened. I have been in the business of giving financial advice for 19 years. During those 19 years I have used various trading systems. To my knowledge there has not been a system I used where you actually had to type in the word million or billion to make a trade. In actuality, as most of you may do when you trade through any retail operation, you typically type in the quantity you want to buy numerically along with the appropriate ticker symbol. As with most computer programs today, there is generally also a failsafe that takes you to another screen asking you if you really want ...

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