Your Worst Enemy To Successful Investing The Media
How do you make your investment decisions and where do you get your information? If you’re like most of the people I know, you look to the experts.
That’s fine, however it’s important to be aware that for every expert, there’s an opinion and for every opinion there’s an expert. I have a friend who says that opinions are like noses: everyone has one but you wouldn’t live in anyone else’s nose!
Around the first of the year, along with the New Year’s resolutions, come the New Year predictions for what will be hot and what will not. As if that isn’t enough to produce a massive case of information indigestion, now we have the cable financial shows with pretty much the opinion of the hour.
What this is producing is a frenzy of buy and sell activity for stocks in general, and now for mutual funds as well. I don’t think this approach serves either the investors in particular or the funds in general.
The big problem with this for mutual fund investors is that all the experts are recommending different funds. It might be one thing if experts had a solid basis for their perspective. If they did, then you would think their recommendations would line up and they’d all be touting the same thing.
But they don’t and they aren’t. Oh sure, each one of them can make a good case for their pick. But so can the next “expert.” And usually both of them won’t be right (if either of them is). So, where’s the value in this for you? Beats me.
Another problem with this approach is that many experts recommend different funds at different times, and, in an effort to be in the hot fund, investors keep moving from fund to fund.
In the same breath, the experts are telling us to invest for the long term. Well, I can’t figure out how to do both: be in the latest hot fund, and hold what I’ve got for the long haul.
The downside of all of this for the funds is that sometimes a fund touted as the hot one to be in attracts so much investment attention (i.e., money) that it grows beyond its original intention. At that point, it loses its direction and the very thing that made it strong is sacrificed. And guess what happens to the performance?
So, in the midst of all the hawking and hype for this fund or that, what’s an investor to do to make intelligent choices?
For myself and my clients I use a trend tracking methodology, which identifies long-term trends in various markets. I research funds for stability and reliability as well as current performance. Then, when our trend indicator signals a Buy, we select our mutual funds based on momentum figures for various time periods to arrive at the most promising fund(s) to use for this cycle.
This gives us a head start and sometimes, weeks after we’ve bought a fund, I see it written up in financial papers as being one of the best performers.
Does this approach always put us in the number one fund? Maybe not. But we are almost always in funds that are doing very, very well. And do we get in at the bottom and out at the very top? Again, maybe not.
However, I can tell you that, using this methodology, my clients and I followed the sell signal we got in October, 2000, and were safely invested in solid money markets when the stock market crashed and burned.
Is this approach for you? It depends on how much adrenaline rush you like when you watch your investments. Personally, I fulfill my thrill quotient with other things in life and enjoy sleeping at night when it comes to my investments.
Ulli Niemann is an investment advisor and has been writing about objective, methodical approaches to investing for over 10 years. He eluded the bear market of 2000 and has helped hundreds of people make better investment decisions. To find out more about his approach and his FREE Newsletter, please visit: http://www.successful-investment.com
ulli@successful-investment.com
Previous Articles Highlighter:
New Energy Bill Reducing Our Dependence On Foreign Oil (1)
increasingly dependent on foreign oil.The U. S. Department of Energy’s Energy Information Administration states that domestic oil production in 2002 was 5.8 mmbd, about 36% lower than the 9.0 mmbd produced in 1985.
The 8 Biggest Mistakes When Designing Portfolios And How To Avoid Them (2)
Properly allocate your portfolio among the different asset classes first and then diversify the investments within each asset class.By avoiding these biggest mistakes you will design an optimal portfolio that provides the best opportunity to achieve and protect your financial independence, control and security.About The AuthorScott Frush, CFA, CFP is president of Bloomfield Hills, Michigan, based Frush Financial Group and is editor and publisher of the Journal of Asset Allocation.
Are Mortgages A Risky Business (3)
and economics, and obtained a masters in viability of banking institutions. She is currently studying Spanish in Andalucia, Spain. This article may be reproduced on websites subject to credit being given to the author, and a link to her website.http://www.regent-estates-group.com/s/apartments-for-sale-fuengirola/index.cfm
Writing One Or Two Line Ads (4)
How? I would click the link, go to the web site to find out. TIP: Your ad is not to sell the person. An ad is to peak their curiosity enough to get them to click the link.
Your Administration TeamLook After Them (5)
Jenny had enough, she left after 6 months and found her current position. It wasn't the money that was her main issue. It was the flexibility and appreciation.
Smart Choices How To Hire The Best (6)
Your organization’s continued growth and success depend on making smart choices and hiring the best. Today’s economy is exploding with talent, allowing you to be selective about the staff you hire.
After The Sale By Kevin Schappell (7)
Pop the hood and find the oil filler cap, the oil dipstick. If you bought a car with an automotive transmission there will be a dipstick for the transmission fluid also.
South Beach Diet Effects On Sales (8)
In the top of preferences, poultry comes first, followed by beef and pork. The sales of beef also boasted significantly and the variety of the products offered for sale increased accordingly.Fish industry is certainly favored by the South Beach Diet, but apparently seafood is friendly to all diets.Another boost in sales was registered by the producers of “Laughing Cow” cheese, warmly recommended during the diet.
Retreads The Highest And Best Use For A Worn Tire By ARA Content (9)
"I don't know of any other recycled product that saves as much money for the end user as a retreaded tire. When you add these savings into the natural resources that are saved and the positive impact this has on the environment, using retreads is a win, win solution for both the transportation industry and the environment," said Martin Bozarth, executive director of the International Tire & Rubber Association.
Bankruptcy Basics (10)
According to the American Bankruptcy Institute “household debt is at a record high relative to disposable income.” The Administrative Office of the U.S. Courts reported that the number of filings for the year ended March 31, 2003 “exceeded 1.6 million for the first time in any 12 month period,” a 15.1 percent increase from the previous year.There are two basic types of personal bankruptcy: Chapter 7 and Chapter 13.
Drivers Of SUVs Saving Big Money With Diesel Engines By ARA Content (11)
"Over 30 percent of the passenger cars in Europe are now diesel, and the main reason is fuel economy," said Charbonneau. "The Big Three know fuel economy is keenly important here in North America." Currently in the United States, diesel engines are an option over the standard gasoline engines, adding a few thousand dollars to the cost of a new vehicle.
The Best Things In Life Are Rarely Things (12)
Imagine the free time we’d have in our minds, dreaming of what inspires us...rather than wasting time attempting to please everyone else.I suppose the lesson to be learned here is that this freedom can be ours.
Multiple Channels Multiple Times (13)
Benefits can be the slippery eels of internal communication.But, to put the issue into context, this is another case of complex communication. In this case, a large volume of information that's not easy to understand.Descriptions of benefits typically involve a high level of density: in other words, they contain a lot of information in a small amount of 'space'.
How To Change Your Car39s Motor Oil By Stephen Bucaro (14)
If you don't install the oil filter tight enough, the oil will come gushing out. If that happens shut down the engine immediately! Without oil, an engine will lock up within seconds.
What 8 (15)
But have you ever considered leasing equipment that you already own? One option is selling your equipment to a leasing company, and leasing it back from them. This way, you generate some cash for your business.
What Is A Secured Loan (16)
Lenders can be more flexible when it comes to secured loans, making a secured loan possible when you may have been turned down for an unsecured loan. Secured loans are also worth considering if you need a new car, or need to make home improvements, or take that luxury holiday of a lifetime.Benefits of secured loans include: Lower monthly repayments than unsecured loans The ability to borrow more money Spread repayments over a longer period of time More detailed information.......A secured loan is a type of loan available to people with securable assets.
Where Is Our Largest Technological Plan (17)
e-Polls 18. e-Management 19. TeleCommuter (home work)20. All IT processing and storage through distant data centers 21. An estimated 1,000,000 new companiesand more e-Xs that you can imagine.
Never Get Lost Again - Map Reading Is A Thing Of The Past By Niall Kennedy (18)
And if I'm going to be going to that destination again I can save it in the memory for future use.It offers 4 modes - the first time I tested it out I chose "shortest route" from home to office, and it displayed almost exactly the route I'd have chosen.You get yard by yard voice instructions (so you don't have to look at the screen as you drive) and it corrects directions immediately if you take a wrong turning, and there's a handy "Repeat" button to get an instant repeat if you didn't hear an instruction.If you need a visual representation of where you are, there is a useful "3-d" view, down to lamp-posts and garbage cans.
BOOK REVIEW Performance Of Financial Institutions Efficiency Innovation Regulation By Patrick T Harker And Stavros A Zenios (19)
Since 1991 he has been based in the island of Cyprus. Andy was a financial correspondent for eight years at the Cyprus Financial Mirror where he wrote articles on business and accounting related issues to a non-technical audience.He is the author of eBooks: How to write and Publish Your Own With a Shoestring Budget http://www.budgetebook.comCBMallakgeorge@cytanet.com.cy
Virtual Assistance Higher Productivity (20)
By using any of the communication devices available today (ie. phone, fax, email, etc), projects can be accomplished without ever having to meet face to face. And, with the growing ease of the Internet, finding a VA almost anywhere in the world is quite simple to accomplish as well.
Newer Articles Highlighter:
Networking Tips Getting An 8 (1)
Ask yourself, if you knew nothing about what you were selling, would the information your 800 number is providing give you all that you need to make an informed decision.An 800 number allows you to network on a broad level to areas and customers you might not have reached with just a long distance number.
Workplace Fitness A Gym Full Of Useful Advice For Continual Learning (2)
While pushing beyond barriers, also know that each one of us has specific abilities. To demand that I hop and dance like the knee-torking guy in the front row is ludicrous.
Business After The Iraqi War (3)
Also, the national unemployment rate, which was released by the Bureau of Labor Statistics, remained unchanged at 5.8% for March 2003. While the majority consensus is that the economy will eventually recover, it is apparent that this will definitely take more time and effort than what most people had originally predicted.Carlos T.
18 Tips For Saving Money On Gasoline By Fisher Swanson (4)
Revving the engine needlessly wastes gas. There is no need to rev before you turn your vehicle off. 15. If at all possible, try to arrange car pools with co-workers to share the cost of commuting to work.
Ten Tips To Get Started Writing Your Book (5)
Do you want to sell it? How many copies do you want to sell your first year? How much money do you want to make each month? What publishing format will you choose--self- publishing, traditional publishing, Print Quality Needed or Print on Demand, or eBook?
Your Organization Is Only As Good As Your People (6)
Everyone has a part to play in this process, but it begins at the top. Every leader sets the tone for their followers. Begin, now, to create an atmosphere in your organization that allows both the organization and the individuals to “be all that they can be.”About The AuthorDr.
You Deserve To Retire Early (7)
If you quit your job, the organization will not shut down. They will find a replacement to do your job. They will continue their business. However, if you quit working for yourself, nobody will replace you.
The Benefits Of Catalog Sales For Your Business (8)
Generally this is not a good deal for your company. Naturally an exclusive with one company locks you out of the rest of the market. If you do grant an exclusive, keep it as short as possible.
4 Customer Service Mistakes Companies Should Avoid Making (9)
Some customers have problems with a service or product that don't fit comfortably into any category. Those are the problems that need special attention, not standard responses. Too many companies ignore this and try to use the "one size fits all" method of complaint resolution.
What Is An Artist’s Statement How Often Should It Be Updated (10)
You are expressing your passion; so don’t feel pressured to become a renounced writer.While being an artist is a rewarding career, unfortunately, there are people outside of this industry who would say it is a hobby.
Celebrating Successes The Power Of Compliments (11)
To use a familiar analogy, criticism has the same impact on people that salt does on plants. Stated positively, compliments act as nutrients for people, just as fertilizer does for flowers.
Timing Is Everything When It Comes To Buying Homes (12)
Troy Swezey is the author of “TIMING IS EVERYTHING WHEN IT COMES TO BUYING HOMES." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs.
5 Tips For Savvy Use Of Your Home Equity Line Of Credit (13)
Net result: interest savings of over $350.00, lower principal balance on my HELOC, and a positive addition to my credit repayment history!Tip 4: First Pay With a Rewards Credit Card!
Getting PreApproved For A Home Loan Is One Of The Best Ways To Get A Leg Up On The Competition When Shopping For A Home (14)
All over the country, more renters are buying and homeowners are upgrading their properties. In this hot seller’s market, a pre-approval letter from your mortgage lender can help you secure a winning bid on the home of your dreams.A pre-approval involves much more than filling out a questionnaire.
Truth Or Consequences How To Give Employee Feedback (15)
Speaking out only when things are wrong. "Praise to a human being represents what sunlight, water and soil are to a plant - the climate in which one grows best." - Earl Nightingale 2.
Settling Your Motor Vehicle Accident Claim Yourself By Dan Baldyga (16)
More often than not (in comparison to the 10 to 15 percent that do) their are relatively low financial stakes and also minor economic losses involved. #4. They’re processed by the insurance company (who will ultimately be responsible for a payment to be made) in a highly routine, assembly-line format.
Steps To Buying A Used Car With Confidence By ARA Content (17)
To help consumers make informed decisions in the process, the experts at CarMax, America's leading used car retailer, have put together a basic list of the things to check when buying a used car.
Can It Be Is There Advertising People Actually Love (18)
Have you ever been handed a logoed scratch pad, coffee mug, pen, coaster, calendar, etc. and then said THANK YOU? Of course you have. We all have.
Are You In The Right Online Business (19)
Write and sell your own electronic book (“ebook”). Start an electronic newsletter (“ezine”). Open an online store.What Is Included In Each Internet Opportunity?The following is a summary level review of each opportunity: 1.
Understanding Real Estate Terminology (20)
An adjustable rate loan or adjustable rate mortgage (ARM) provides a discounted initial rate, which changes after a set period of time. The rate can’t exceed the interest rate cap or ceiling allowed on such loans for any one adjustment period.
Permalink to Your Worst Enemy To Successful Investing The Media