Quality Trend Analysis

Archive for April, 2020

Quality Trend Analysis

By Jim Walker on Tuesday, April 28th, 2020 | Comments Off

Trend analysis is an effective way to predict equity price movements. But, it requires a good understanding of the market and its movements. And, for this tool to result in profits, it needs to be applied to quality investments trading on major exchanges and not cheap penny stocks that are prone to the “pump and dump” type of hype. We refer to this as quality trend analysis.

Purpose of Trend Analysis

The reason to use this approach in investment and trading is to predict future prices. The rationale is that by finding a beginning or […]

What Will the Recovery Be Like?

By Jim Walker on Monday, April 27th, 2020 | Comments Off

As the coronavirus pandemic seems to be leveling off there are hopes for better times ahead. What will the recovery be like and how should you invest?

Important Moving Averages

By Jim Walker on Tuesday, April 21st, 2020 | Comments Off

Investors who keep an eye on the important moving averages will be able to buy and sell at the most advantageous times.

Is This a Golden Opportunity to Invest in Energy Stocks?

By Jim Walker on Monday, April 20th, 2020 | Comments Off

The coronavirus pandemic has ushered in the worst financial
crisis since the Great Depression. Add to that the oil production war started
by the Saudis and you have the lowest oil and gas prices in almost 20 years! It
might seem like a good idea to get out of any investments related to oil and
gas production. But, this terrible crisis, like every crisis, will pass. When
that happens there will be a rebound. How fast or slowly that happens will
depend on how quickly the virus threat recedes and how well the Fed and
congress do in supporting credit markets and providing cash to work with. […]

When Should You Start to Buy Stocks Again?

By Jim Walker on Wednesday, April 15th, 2020 | Comments Off

Economists are already saying that the coronavirus pandemic
will drive the world economy to levels not seen since the Great Depression. In
our article, How Far Could Stocks Fall, we noted that the 1929 stock
market crash (which ushered in the Great Depression) was not limited to October
of 1929. The market continued to fall until late 1932 by which time the Dow
Jones Industrial Average had lost 90% of its previous value. Anyone who has
cash in hand will have many opportunities to buy excellent stocks at bargain
prices when the market bottoms out. But, when will that be? When should you buy
stocks again?

When Should You […]

Is Now the Time to Invest in GE?

By Jim Walker on Monday, April 13th, 2020 | Comments Off

General Electric is an American conglomerate originally formed by a merger in 1880 of the Edison General Electric Company (started by Thomas Edison) and Thomson-Houston Electric Company. It was one of the original stocks in the Dow Jones Industrial Average in 1898 where it was listed most of the time for the next 122 years. The high point for GE stock was $59 a share in June of 2000 before the dot com crash. It fell to $23 a share by late 2002, rose to $41 a share by 2007 and fell during that […]

Beware of Volatility in Your Investments

By Jim Walker on Friday, April 10th, 2020 | Comments Off

Market volatility is caused by uncertainty. Today the coronavirus is ravaging America and the world. The twin threats of a massive death toll and a severe and long term recession have rightfully spooked many investors. And, stock market volatility is the highest since the early days of the 1929 stock market crash. We have posed the question, how far could stocks fall? A close look at the market crash that started in 1929 shows that it did not end until three years later in 1932. Incidentally, the market bottom and beginning of a […]

Is Berkshire Hathaway a Good Investment?

By Jim Walker on Wednesday, April 8th, 2020 | Comments Off

The stock market has taken a big hit with the double whammy of the coronavirus pandemic and an oil price war between Saudi Arabia and Russia. Considering that things could get even more difficult before they get better, we wrote recently about safe investments for a ten year recession. In general, we stick to general principles for investing in stocks and only mention individual investments as examples. However, there is one investment opportunity in the current market mess that we believe is worth looking at. Warren Buffett’s company has been stockpiling cash for a […]

Safe Investments for a Ten Year Recession

By Jim Walker on Friday, April 3rd, 2020 | Comments Off

As the coronavirus continues to spread and claim lives across the world, the markets have plummeted and people in the “informal economies” of the world are without work or food. As we wrote in our article, How Far Could Stocks Fall, we reminded our readers that the stock market crash that started in 1929 did not end until 90% of market value was gone three years later. The economy was further damaged by an ill-advised trade war (Smoot Hawley Tariff) and the evaporation of credit. Historians may decide in years to come that the […]

Archive for April, 2020