Stochastics has been a useful tool in predicting stock prices since it was developed by George Lane 75 years ago. This tool assesses how closing price and price range relate or a given time frame. Stock investors and traders can use a stochastic trend to determine if they should buy or sell their securities. This tool is always used in conjunction with methods like important moving averages in determining when is the best time to buy or sell.
What “Stochastic” Means
The dictionary definition of stochastic is something that has a pattern or distribution which is […]
Quality Trend Analysis
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 […]
Investing in Potential Coronavirus Treatments
When the coronavirus epidemic started to spread we wrote
about investing in pharmaceuticals and the coronavirus. We noted
that a vaccine is a long way off and that a better short term investment
strategy would be invest in companies that make hand sanitizers, general
cleaners, masks, and other immediately necessary items. While it will take some
time (12-18 months) to devise and produce a vaccine, medicines to treat people
with coronavirus could be available sooner. Such medicines would not make the
pandemic go away but they would alleviate suffering and reduce the number of
deaths from this modern day plague.
What Sorts of Treatments Are Possible?
Modern science has found […]
Don’t Be Scared Away from Profitable Investing
The stock market has been going up ever since the dark days of the Financial Crisis. And, many investors have done extremely well. Meanwhile, contrarians have been predicting everything from a market slowdown to a crash for years. Shorting stocks is popular with many who see the market and many individual stocks as ready to tank. The continual stream of market doom and gloom reminds of how the famous American author Mark Twain was reported to have died. He was later quoted as having said, “The report of my death was an exaggeration.” […]
Best Investment Opportunity
An overlooked investment sector is outshining all of the rest this year. While everyone is in love with the FAANG stocks and buying real estate, utility stocks have been having an exceptional year. Utilities are not just the best investment opportunity and best stocks to invest in right not. They are traditionally excellent long term investments with strong intrinsic stock value.
Why Are Utility Stocks Good Investments Today?
Market Watch writes about the hottest stock-market sector. And, guess what? It is the utilities!
It may not surprise you that utility stocks have fared well as […]
Risks of Investing in China
Another brick in the trade war wall between the USA and China was laid last week when the White House suggested that Chinese stocks might be delisted from U.S. stock exchanges. Stocks fell briefly before a White House spokesperson denies the “rumor.” We have written for years about the risks of investing in China. A few years back we discussed the flight of capital from China. Wealthy Chinese were taking the money they made during China’s economic rise and using it to start businesses, buy property, and simply move their money out of China. […]
Why Buy and Hold Disney?
Disney is a name that everyone recognizes. Their theme parks are famous for the attractions as well as the long lines. Watching Snow White and Mickey Mouse cartoons has been part of childhood for generations. But, can Disney survive on the revenue from their theme parks and old movies? Aside from the famous name, why buy and hold Disney? The answer lies in one word, content! If you have not been paying attention, here is an update on the venerable and also forward-looking company.
Investing in Walt Disney Company
Walt Disney Company (DIS) has been a part […]
Proven Stock Market Strategies
There is always someone giving investment “advice” as they promote one stock or another. But, what proven stock market strategies can you follow profitably over time? In this article, we look at a general approach to reliably profitable investing and then at specifics. For most investors, the best approaches are the simple ones. These are folks who have money they want to put away for retirement, a rainy day, putting the kids through college, or starting their own business. These folks have neither the time nor the inclination to get overly involved in the details of stock market investing but […]
Can Passive Investment Be Risky?
Over just the last few years the proportion of the US stock market that is invested passively has moved up to 45%. Investors are attracted to ETFs (exchange traded funds) because of their low overhead. And, many have outperformed actively traded vehicles like mutual funds and other actively managed investment vehicles. But, can passive investment be risky?
Passive Investment Is on the Rise in the US Stock Market
CNBC reported that passive investing automatically tracking indexes has risen to nearly half of the US stock market.
Passive investing, made up of funds tracking market barometers, has now taken over nearly half the stock […]
Win the Trade War and Lose on Your Investments
The trade negotiations between the USA and China are coming to a head. Will there be genuine gains for the USA? We have written how both the USA and China have issues that they see as crucial to their national prosperity and security in our article about if the trade war becomes permanent. However, neither side wants to suffer the economic pain that could come out of a protracted trade war. China, especially, is seeing economic difficulties on the horizon and needs to do something sooner rather than later. So, there may well be a deal forthcoming. However, from the […]