Yep, it happened again... we hit a new high in the stock market yesterday. As I write this post, the Dow is down about 24 points due to GDP numbers coming below expectiations and the fact that traders usually don't like to hold positions over the weekend. A slight pullback was going to be seen today anyway unless there was a REALLY GOOD reason to stay in over the weekend.
Still, for the year the "blue chips" are up 13.5% for the year and have set records for 13 of the past 18 trading sessions. How can you stay out of the market?!?!?!?!?!
Get in, learn, profit from your experiences and build a better future for yourself.
Friday, October 27, 2006
Wednesday, October 25, 2006
Not in the market?
Why not? With so many ways to painlessly get into the stock market without having to be a financial expert, I don't understand why so many people still shy away. Here are three ways to help you stay informed and get in the market for the long haul.
Subscribe to a business newspaper. The Wall Street Journal is an invaluable assett to have when trying to keep yourself informed. Yes it has one section that is filled with numbers but don't let that scare you. It also has alot of in-depth stories concerning politics, international news, personal investing and other worthwhile stories that all (in some way) affect the rate of return on your investments. Just glancing at the headlines each day and reading the stories that interest you will help you stay ahead of the curve act accordingly with respect to your investments before many other people do. Usually, when you are ahead of the crowd with your investments, the crowd will carry you to higher rates of return. Think of being in the ocean and catching a wave early and riding it to shore.
Get in your company's 401(k) today. If you're not already in the 401(k) plan, get in today. Contribute the maximum allowed by your company. In most cases, your company will match a certain percentage of your contribution. THAT IS FREE MONEY. WHY AREN'T YOU TAKING ADVANTAGE OF THAT???? Your participation shouldn't cost you anything and experts manage your money for you. In most cases today, there are investment experts who will counsel you on how to invest your monthly contribution.
Start your own monthly investment in a simple savings account at the bank. With interest rates on the rise and internet banks competing with their brick-and-mortar counterparts, the return on simple savings accounts are difficult to ignore. A great place to invest your cash is in a savings account with Citibank® e-Savings. Earn 5.00% APY and you can set up a monthly automatic transfer out of your regular checking account into your e-savings account. Before you know it, you'll have a nice chunk of money to start a mutual fund with or invest in an IRA.
What are you waiting for? Take advantage of the opportunities that are out there and put some money back for when you retire. You'll be glad you did.
Subscribe to a business newspaper. The Wall Street Journal is an invaluable assett to have when trying to keep yourself informed. Yes it has one section that is filled with numbers but don't let that scare you. It also has alot of in-depth stories concerning politics, international news, personal investing and other worthwhile stories that all (in some way) affect the rate of return on your investments. Just glancing at the headlines each day and reading the stories that interest you will help you stay ahead of the curve act accordingly with respect to your investments before many other people do. Usually, when you are ahead of the crowd with your investments, the crowd will carry you to higher rates of return. Think of being in the ocean and catching a wave early and riding it to shore.
Get in your company's 401(k) today. If you're not already in the 401(k) plan, get in today. Contribute the maximum allowed by your company. In most cases, your company will match a certain percentage of your contribution. THAT IS FREE MONEY. WHY AREN'T YOU TAKING ADVANTAGE OF THAT???? Your participation shouldn't cost you anything and experts manage your money for you. In most cases today, there are investment experts who will counsel you on how to invest your monthly contribution.
Start your own monthly investment in a simple savings account at the bank. With interest rates on the rise and internet banks competing with their brick-and-mortar counterparts, the return on simple savings accounts are difficult to ignore. A great place to invest your cash is in a savings account with Citibank® e-Savings. Earn 5.00% APY and you can set up a monthly automatic transfer out of your regular checking account into your e-savings account. Before you know it, you'll have a nice chunk of money to start a mutual fund with or invest in an IRA.
What are you waiting for? Take advantage of the opportunities that are out there and put some money back for when you retire. You'll be glad you did.
Saturday, October 21, 2006
Banks are getting a clue
An article in this morning’s Wall Street Journal (10/21/06) by Jane J Kim discussed how more banks are “chasing credit-hungry consumers” online. Why is this important? Who knows why banks are just now using the internet on a wider scale. My opinion is that banks are sometimes slow to come around. The internet has been cutting into their business for years, they’re now feeling the pinch and recognizing that the “internet thing” is not a passing fad. It’s here to stay.
Use of the latest technology can help speed up business, which in most cases, keeps costs low. The less human interaction during a banking transaction, the better. At least that’s my opinion. I don’t see why I need to go sit in front of a banker and ask for a loan when I can get on the internet, apply, be approved in seconds, and have the funds in my account in 24 hours or less. Internet banks and traditional brick-and-mortar banks who have figured this out are ahead of the curve. There are still a few people who value the human touch – I’m not one of them when it comes to things that can be better served with technology.
Competition keeps prices reasonable. For several years now, there have been many online financial institutions offering their products through the internet only. That business model allows them to keep operating costs down (no brick-and-mortar location) and pass those savings on to customers in the form of higher yields on savings products and lower interest rates on loans. In some cases, the difference in rates between online banks and traditional banks may not be much. In today’s world where consumers are able to send their money to any financial institution almost effortlessly, that money tends to follow the best rates offered – anywhere.
Use of the latest technology can help speed up business, which in most cases, keeps costs low. The less human interaction during a banking transaction, the better. At least that’s my opinion. I don’t see why I need to go sit in front of a banker and ask for a loan when I can get on the internet, apply, be approved in seconds, and have the funds in my account in 24 hours or less. Internet banks and traditional brick-and-mortar banks who have figured this out are ahead of the curve. There are still a few people who value the human touch – I’m not one of them when it comes to things that can be better served with technology.
Competition keeps prices reasonable. For several years now, there have been many online financial institutions offering their products through the internet only. That business model allows them to keep operating costs down (no brick-and-mortar location) and pass those savings on to customers in the form of higher yields on savings products and lower interest rates on loans. In some cases, the difference in rates between online banks and traditional banks may not be much. In today’s world where consumers are able to send their money to any financial institution almost effortlessly, that money tends to follow the best rates offered – anywhere.
Friday, October 06, 2006
30 year mortgage hits a 7 month low!
Falling 6.31% to 6.30% (woo hoo!!) the 30 year mortgage rates hit a 7 month low. That was a sharp enough drop to spark a rise in refinance applications of 18% last week alone. Housing bubble burst? It seems to me that people are trying to breathe new life into that bubble.
Thursday, October 05, 2006
Gas Prices Falling -- So What?
Gasoline prices have dropped more than 20% in the past few (2?) months. What does that do for you and I? Plenty! The less we have to spend putting gas in the tank -- a commodity which we very much need -- the more we have to spend elsewhere -- like on food, clothing, maybe even eating out or going to a movie.
Gas prices have an enormous affect on the economy. It is one of those "must have" commodities of today. So when gas prices rise, we spend less elsewhere and that hurts local businesses everywhere -- suddenly there's a national "belt tightening." We need gas for our cars so we can get to work, get the kids to and from school, get to the grocery store, etc. Delivery drivers, truckers feel the pinch because they certainly need gas to fuel their vehicles to get goods to the store shelves. They pass along the incresed cost of fuel to the locations they serve, who in turn pass it along to us in the form of higher prices on food, clothing, and other necessities! So we end up paying for high gas prices at the pump and EVERYWHERE else.
Thankfully, the price of crude oil (the underlying commodity that drives the price at the pump) has been gradually falling. Iran has settled down, there have been no major hurricanes like last year, the summer driving season is over, and crude oil inventories are at high levels. Translation: supply is higher than demand so the price continues to fall. That is the best way to get the price of most anything to fall -- quit using it! When supplies start building up, prices fall to get the product moving again. Merchants adjust their prices to entice buyers to spend. Market forces are much better at adjusting prices than any govermnent could ever do.
Want to keep the price of gas falling? Plan your daily driving -- if you know you're going to have to take the kids to school and then pick them up later, try to do errands while you're out. It saves just a little bit if you do more while you're already out and about rather than coming home between to-do's.
Don't fill up completely every time you go to the gas station. That one takes some discipline. My car holds about 16 gallons of gas. I put $25 worth of gas in the tank once a week. I know that gas has to last me all week long so I am careful what I use it for.
Buy gas when you see the price fall a few pennies. I watch the price of gas at the stations around where I live. I know that when I see the price of crude oil fall, there is sure to be a fall in price at the pump soon. So if I'm near my refueling day, I might wait to see if the price falls or if the price is too good to pass up, go ahead and get some fuel in the tank. Just know that it still have to last until next refueling time.
Just a few simple things to do your part on a daily basis to increase the overall supply of fuel and watch the cost continue to fall. Are you making that much of a difference? Not really, but if you get others to follow your example, the intended effect on fuel prices will be evident at the pump.
Gas prices have an enormous affect on the economy. It is one of those "must have" commodities of today. So when gas prices rise, we spend less elsewhere and that hurts local businesses everywhere -- suddenly there's a national "belt tightening." We need gas for our cars so we can get to work, get the kids to and from school, get to the grocery store, etc. Delivery drivers, truckers feel the pinch because they certainly need gas to fuel their vehicles to get goods to the store shelves. They pass along the incresed cost of fuel to the locations they serve, who in turn pass it along to us in the form of higher prices on food, clothing, and other necessities! So we end up paying for high gas prices at the pump and EVERYWHERE else.
Thankfully, the price of crude oil (the underlying commodity that drives the price at the pump) has been gradually falling. Iran has settled down, there have been no major hurricanes like last year, the summer driving season is over, and crude oil inventories are at high levels. Translation: supply is higher than demand so the price continues to fall. That is the best way to get the price of most anything to fall -- quit using it! When supplies start building up, prices fall to get the product moving again. Merchants adjust their prices to entice buyers to spend. Market forces are much better at adjusting prices than any govermnent could ever do.
Want to keep the price of gas falling? Plan your daily driving -- if you know you're going to have to take the kids to school and then pick them up later, try to do errands while you're out. It saves just a little bit if you do more while you're already out and about rather than coming home between to-do's.
Don't fill up completely every time you go to the gas station. That one takes some discipline. My car holds about 16 gallons of gas. I put $25 worth of gas in the tank once a week. I know that gas has to last me all week long so I am careful what I use it for.
Buy gas when you see the price fall a few pennies. I watch the price of gas at the stations around where I live. I know that when I see the price of crude oil fall, there is sure to be a fall in price at the pump soon. So if I'm near my refueling day, I might wait to see if the price falls or if the price is too good to pass up, go ahead and get some fuel in the tank. Just know that it still have to last until next refueling time.
Just a few simple things to do your part on a daily basis to increase the overall supply of fuel and watch the cost continue to fall. Are you making that much of a difference? Not really, but if you get others to follow your example, the intended effect on fuel prices will be evident at the pump.
Wednesday, October 04, 2006
Stock Market Hits Record High
When headlines like this were posted across the world back in 2000 the mood of traders and investors was a lot more euphoric. It took 6 years but this record demonstrates the reselient American economy and the strength of Democracy. In 2000 the Dow Jones Indurstial Average closed at a record high of 11722.98 but yesterday, the DJIA closed at a new record high of 11727.34.
It's a much different world today than the day when we hit the record in 2000 -- Of course, with 911 changing everything. Yesterday when the Dow reached the new record, traders barely even noticed. There was no applause; when the market closed, barely anyone reacted. People were more concerned with other news of layoffs and speculation of how the drop in oil prices will help out consumers going into the holiday season.
I like the fact that there wasn't much celebration of the record. I think it shows discipline on the part of investors. What is exciting is the days to come. Ok, the Dow hit a record. Will it back off today and have a record fall? Or will it keep pushing higher? Stay tuned!
It's a much different world today than the day when we hit the record in 2000 -- Of course, with 911 changing everything. Yesterday when the Dow reached the new record, traders barely even noticed. There was no applause; when the market closed, barely anyone reacted. People were more concerned with other news of layoffs and speculation of how the drop in oil prices will help out consumers going into the holiday season.
I like the fact that there wasn't much celebration of the record. I think it shows discipline on the part of investors. What is exciting is the days to come. Ok, the Dow hit a record. Will it back off today and have a record fall? Or will it keep pushing higher? Stay tuned!
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