Saturday, December 19, 2009

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.

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Protecting your money, is more important than investing it.