Stock market investing

Investing in most individual stocks is a bad idea. There are only two stocks that I would buy and hold for the long run, MCD, and Teva, I mean ten years or more. These two stocks, although would go down in a stock market meltdown, they are sure to come back when the stock market bounces back. These two companies are cash rich in good times and bad.
As for better performing mutual funds with Morningstar five star rating, and have been around
longer than most investors have been alive, I recommend Fidelity contra, and vanguard fortune 500 fund. They both hold over 50 billion dollars in assets and always come back after a stock market meltdown. Warren Buffetts, Berkshire Hathaway has been a winner for decades. The problem I have with Berkshire Hathaway, is that Warren Buffett probably won't be at the helm in ten years, and will his replacement be as good?
My next blog will tell you what not to buy in the stock market.

Stock market investing

Timing the stock market is not as difficult as financial analysts make it out to be, in order to make money. In fact the majority of them will tell you it's impossible. That's not true, and I will show you why. The time to enter and exit the stock market depends on the unemployment rate, which affects interest rates determined, by the FOMC.
I found that if the unemployment rate is 8% or greater and interest rates are coming down, or staying very low, it is time to get into the stock market. It is time to get out of the stock market if unemployment is below 5% and interest rates are going up, or the FOMC is hinting that interest rate increases are coming. This theory has worked for me and it will work for you.
This theory will only work if you are a patient long term investor not a trader.
You must also stick to the 80%, 20% stock to cash ratio that I mentioned on my previous blog.
My next blog will tell you one of the best places to invest, while invested in the stock market
in all kinds of markets, up or down.

Stock market investing

Many financial analysts contend that it is impossible to time the stock market and make money, and that is bunk.There are certain criteria that must be met before entering or leaving the stock market, for making money, and I will tell you the answer to that, in my next blog.

Stock market investing

The reason for the 80% stock market and 20% savings bank allocation is not just that you can
access the 20% cash in an emergency, but to able to hold off selling your investment in a horrendous stock market, and selling your stocks at bargain basement prices.

Stock market investing

Never put more than 80% of your money in the stock market. When it turns ugly you will glad you did. The 20% should be in a savings or money market bank account for fast access.