Archive for the ‘Different Ways of Investing Money’ Category

The Greatest Money Migration in 63 Years

Wednesday, September 10th, 2008

 Is About to Make a Few Investors Very Rich

 It completely dwarfs the “Great American
Industrial” run up, the tech boom and
the Internet combined…

 Dear Investor

 We are living in unprecedented times

 A major money migration event is taking place in the financial markets right now…

 Right now while you are reading this article billions of dollars are being transferred into one investment class………..

And it has only just started…………..

In the coming 12 to 34 months, it has been estimated another $100 billion US dollars will flow into this investment class – handing investors a “golden” opportunity to pocket 100, 200, even 300 % gains.

That’s right.

Imagine taking a $10,000 investment and watching it balloon to $40,000 in less than three years…

Or a $50,000 investment grow to over $ 250,000 over the same time period!

That’s how powerful this “money migration” is.

 And it has already begun.

Over the course of the next few minutes, I’ll explain just how and why this may be the biggest money making opportunity you’ll see in your lifetime – and why it’s inevitable that most investors will miss out on it.

It’s important to know this is not about investing in a single “breakthrough” stock…

It’s about profiting from a monumental shift in global capital – the likes of which investors have never seen.

What’s more, this is not an opportunity you’ll learn about by watching CNBC or reading Money magazine…

As always whenever there has been a massive historic economic event in the making – most investors and economic pundits will not talk about it until after it has happened.

 And like so many other “big trends” before it 

The industrial revolution, post World War II boom, the information age

Virtually almost everyone will be kicking themselves for not seeing it, and almost everyone will also lose out from profiting when they had the chance.

That’s the reason why only a relative few investors will ever be able to take advantage of this opportunity.

But, if you’re one of those few who understands the driving force behind this important and inevitable money migration and market shift 

You’ll know instantly the obvious ways to profit from it…

I’m sure if you take action and apply this knowledge you may even look back on this moment as the single most defining investing moment in your lifetime – when this one decision you made allowed you to once and for all erase any financial worries out of your life.

So let’s get to the core of this matter…

Let me explain to you about this phenomenal economic event that’s going to make a handful of informed and savvy investors extremely wealthy over the next three years…

This is without question the largest avalanche of New Profits Ever Unleashed…

Do you want to be part of it?

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Click link below to learn how you can profit from this money migration too

www.secretmoneymanager.com

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 Because while you are sitting here reading this article; the biggest redirection of capital the world has ever seen is underway.

Billions of dollars are literarily leaving the once-rock solid U.S. markets and migrating into blue-chip companies based outside of the U.S.

There are many reasons why it’s happening.

One is the U.S. dollar is flagging, weighed down under a growing mountain of debt.

Global investors can’t see how the U.S. can keep servicing such a humongous debt.

A correction is long overdue and while it is taking place inside of U.S, smart money is moving overseas.

The future clearly lie in emerging powerhouses like China, India and other once secondary economies that are going full stream ahead.

Honestly though, the reasons aren’t as important as the trend itself.

Here’s why: Know where the money’s headed and you’ll get rich.

It’s as simple as that.

In a minute I’ll introduce you to a powerful, proven investment tool which can show you how you can put your investment portfolio on auto pilot and ride the coat tails of the world’s best money managers.

They have a proven track record of up to 10 years of knowing precisely where the “smart” capital is moving – places where it’s still possible to rack up 200%, 300% + gains and more in the coming 36 months alone.

Let’s face it, investing is about having the right information at the right time and taking action on that information.

Many people are of the opinion that knowledge is power, however this is not true, because if you have the right knowledge and do nothing with it how much is it worth?

Here is what makes the difference;” Applied knowledge is power”.

Once you apply this system it’ll be as if you stumbled on the biggest bull market in modern investing history.

Like bull market runs in the good old days when top U.S. companies were propelled higher day after day, month after month.

However this time it is not U.S based companies doing the Big Bull Run.

This time the bull run is led by super high growth companies that you have probably never heard of

Yet they are surpassing the likes of General Motors, General Electric, IBM, Boeing, Lucent, U.S. Steel, Citigroup, Philip Morris, McDonalds, Alcoa, you name it…

What’s more, these “gazelle” like companies are still extremely cheap – trading at P/Es in the single digits – And yet they have global sized markets…

If you take a look at the investment arena of the last 25 years there has historically not been an opportunity of this enormous magnitude…

But don’t just take my word for it…

Look at the fundamentals, what’s happening right now all comes down to the “BRIC”.

Brazil, Russia, India, China.

Recently the Wall Street Journal said;” For the first time in history this money migration has attracted more money than all U.S. stock funds combined”.

Warren Buffett, has invested $21.4 billion in foreign currencies to take advantage of the money migration.

Emerging markets beat Wall Street by more than 20-fold, according to data from the Wall Street Journal.

Investors who knows how to take advantage of this situation are about to land on a gold mine. Let me explain…

This is The Kind of Growth That Fortunes Are Made On

Taking advantage of this Great Money Migration is just like staking your claim to extraordinary wealth.

Consider that…

Investors got stinking rich, making 300%, 400%, 500% gains during the tech hardware boom in the ‘80s and it “only” attracted around $ 50 billion.

From 1980 until 1990 investors who bought IBM stocks doubled their money every year for ten years.

Yet the rush for this boom has only just begun and it has already attracted 1 trillion dollars.

The Internet boom run up attracted $ 120 billion and investors got even richer some making 1100 % or more by year 2000.

Some very savvy and smart investors made gains of more that 95,667 % on gems like Cisco, turning $ 10,000 into $ 9.56 million…

People made huge profits on stocks that has turned into common everyday names.

Historically the world has not seen a money migration of this magnitude since 1942 when 7 trillion dollars began flowing into the U.S at the end of the 2nd World War .

Back then the money migration was so huge the U.S captured 50 % of the world’s economy and it made USA the richest country on earth.

Savvy and informed investors had arrived on Easy Street.

However this current money migration is set to exceed the Great American Industrial run up by up to 20 times!

And the reason is simple…

Just Follow the Money Trail To Reap the Profits…

The picture of this money trail is outrageous…

Yet it shows the enormity of this opportunity – and why it is so absolutely critical to claim a stake in this money migration right now.

You see, just after World War II in 1945, one out of every two dollars in the world flowed into U.S. companies. That by itself was not surprising…

There was actually not any other choice… Europe and Japan had all but collapsed. And America literally was the world’s market.

Unfortunately, that has changed dramatically…

Today less than 22% of the global economy belongs to the U.S. – a huge drop from the 50% figure it used to to be…

That’s a decline of more than half of what it was just a few short years ago.

The world’s highest performing money managers continue to pinpoint the most important emerging countries as Brazil, Russia, India and China, collectively known as the BRIC.

These are the areas of the world where big money is being made right now.

 Recently this is what Goldman Sachs, one of the world’s leading investment banking firms, had to say:

 “… China could overtake Germany in the next couple of years, Japan by 2015 and the U.S. by 2039. India’s economy could be larger than all but the U.S. and China…”

As a matter of fact, some of the best and biggest investing gems come from markets that are almost unknown by the investing world.

The B.R.I.C is set to Dominate World Markets in the future

New Goldman Sachs research indicates that…

And this might shock you, by the way…..

The combined economies of the BRIC countries could become larger than the G6 countries in U.S. dollar terms.”

“The BRICs real exchange rates could appreciate up to 300%…”

If you have any doubts that the money migration is a rare and unique investing opportunity, look at what

The McKinsey Global Institute has reported.

The McKinsey Global Institute, one of the world’s premiere financial analysis companies, has recently concluded in its year long research initiative – a comprehensive study of the top 100 countries, going all the way back to 1980.

This left a few analysts privy to this information with their jaws agape…..

and scrambling to figure out just how to get a piece of the profits.

In the report it states that investments are set to climb from $119 trillion to more than $209 trillion in the top producing countries in the world within the next few years.

That is an increase of over $91 trillion dollars, that’s almost double…. And mind you it’s trillion with a “t.”

It’s the biggest money migration into the world’s economy in our lifetimes…

In comparison the entire U.S economy is valued at $ 12 trillion right now. 

The companies that serve the largest global markets, are growing faster than analysts could have ever predicted.

Can you see, the growth in companies worldwide?

These are first and foremost companies in Brazil, Russia, India and China. It also includes companies in Eastern Europe, Germany, France, Switzerland, Canada and finally a select few in the U.S.A.

Don’t you want to take part in this life-changing opportunity? 

Isn’t it your turn to participate and profit from the biggest investing event in 63 years?

It is already getting under way…

Are you going to sit on the fence and watch or do you take action?

______________________________________________________________________

Learn more about this powerful, proven investment tool which can show you how to put your investment portfolio on auto pilot and ride the coat tails of the world’s best money managers.

Don’t miss out on this once in a life time opportunity.

Take Action and Click on the link below to find out more

WWW.SECRETMONEYMANAGER.COM

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What’s more, by not taking action of this money migration could put a major dent in your portfolio.

Investors are facing the biggest risks to their capital than at any other time in recent history…

I mean look at “Fannie” and “Freddie” they used to be safe as houses.

However as it turns out those houses were mortgaged at hyper inflated unrealistic prices.

“Fannie” and “Freddie” along with major banks, regional banks and other investors stand to loose big time!

Most U.S. companies are faced with unprecedented outsourcing, low-wage foreign competition, rising commodity and energy costs, accounting scandals, and unfair governmental regulation.

And it shows…

When you consider that inflation has been hovering around 3%, the losses are getting even bigger.

And then there’s the dollar – it’s lost 40% of its value since 2001.

Legendary investor Warren Buffett announced that he now holds more foreign currency than U.S. dollars.

And Bill Gates, one of the world’s richest men with a net worth of $46.6 billion, is betting against the U.S. dollar …

“I’m short on the dollar,” Gates told Charlie Rose in an interview at the World Economic Forum in Davos, Switzerland. “The old’ dollar, it’s gonna go down.”

As the dollar falls with respect to other currencies, U.S. stocks will continue to fall with it…

Are you taking advantage of being invested in these emerging markets?

Are you unsure of how to access these markets and avoid the most common traps pitfalls and mistakes?

_______________________________________________________________________

Learn how you can take advantage of this unprecedented money migration by riding the coat tails of the best money managers in the world.

www.secretmoneymanager.com  

_______________________________________________________________________

 

Posted in Different Ways of Investing Money, Diverse Investing, Fund Investing, Gold Investing, Income Investing, International Investing, Investing Principles, Investing Secrets, Investing Strategy, Investing Tips, Investing in Silver, Investment, Offshore Investing, Silver Investing, Strategic plan for Investing | 12 Comments »

Basic Concepts of Investing

Monday, August 18th, 2008

Basic Concepts of Investing

You have done your research and due diligence, you like the company, the products and you really feel after all you have learned that the set of stocks before you is where you want to stick your investment money. By all means, at this point, invest the money. After all you have learned, it isn’t going to get any better than this for the buy in. Now let’s go over some of the basics of investing in the stock market. While this may seem a bit odd to talk about after you have already pressed the buy button, in all honesty, this is when investing starts, not where it ends.

Our main objective is to make money. That is our guideline and our goal. The first principle to making money with stocks is to sell the losers and let the winner’s ride. It is fairly common to hear strategies of selling once the investment has doubled or tripled, and many people have a problem with letting go of a declining stock.

The principle is easy to agree with, but the reality is that we tend to get sucked in to an investment hoping it will rebound. If you are hoping, you shouldn’t be investing. There needs to be solid reasons for our play, not just a feeling. Again, this sounds like fairly plain and simple advice, but more often than not I hear “I should have…” from intelligent, well researched investors riding a hope to the bottom.

Riding out the winner can be just as difficult to do at times. The stock doubles and we start thinking “sell”. After all, we have doubled our money, we didn’t get burned. We’ll get the money out, and start the research again.

Peter Lynch often talked about his “ten-baggers” which were a small set of stocks which had increased in value by 10 fold. It is said that most of his overall success was due to keeping well informed regarding a small number of stocks, which returned big. The truth is that doubling on small buy-in stocks isn’t that hard to accomplish; however, the time and effort involved in picking good stocks is a huge investment. If you have a personal policy to sell after a stock has increased by a certain multiple – say three, for instance – you may never fully ride out a winner. Don’t underestimate a stock that is performing well by sticking to rigid personal rules – if you don’t have a good understanding of the potential of your investments, your personal rules may end up being arbitrary and limiting.

Selling the loser after all of that research and time, can be very difficult, but like it or not, there is no guarantee that a stock will come back up after a protracted decline. Somewhere along the line we forget that we can do all the right moves and still not make the right choice. If a stock is in a protracted decline then cut it loose.

Never be ego-ed into keeping a stock you know is a looser, just because you like the company.

In both cases, the point is to judge companies on their merits according to your research. In each situation, you still have to decide whether a price justifies future potential. Just remember not to let your fears limit your returns or inflate your losses.

Hot Tips are just as devastating. You can consider this the hottest tip you are ever going to get, “don’t buy into hot tips”. Whether the tip comes from your brother, cousin, neighbor, or even your broker, no one can guarantee what a stock will do. When you make an investment, it’s important you know the reasons for doing so: do your own research and analysis of any company before investing. Tidbits are for bedtime snacks and toppings on frozen yogurt, not for information. We really want the full meal for information we are going to place our money on.

Just about anyone can get a feeling or hear something the right way. Some people believe that it is better to be lucky than good. Statistics and my personal adventures down both paths tell me otherwise. Be informed in your investments, not just vested. My personal rule is, if my broker has to have an answer today, then the answer is no. Absolutely no investment is worth my money if it is not a long term investment. I’m not against doubling my money in a week, that’s why I play poker, but I don’t take that mindset into my investments.

Rule 62, don’t sweat the small stuff. There are several great guides out there with formulas and trend advice. They are great reads and good guides, but when you get to the end of the day, add one more rule to the list ‘don’t sweat the small stuff’. The market reacts like, well, like millions of investors all over the world are trying to figure out what is going to happen next. Rumor mills grind, and special news reports investigate and political bodies rub against other political bodies. As a long term investor learn to watch short term movements with a casual eye. When tracking the activities of your investments, you should look at the big picture. Remember to be confident in the quality of your investments rather than nervous about the inevitable volatility of the short term.

Granted, active traders will use these day-to-day and even minute-to-minute fluctuations as a way to make gains. But the gains of a long-term investor come from a completely different market movement – the one that occurs over many years – so keep your focus on developing your overall investment philosophy by educating yourself.

Investors often place too much importance on the P/E ratio. Because it is one key tool among many, using only this ratio to make buy or sell decisions is dangerous and ill-advised.

The P/E ratio (for those that don’t know) is one of the tools often used by investors to asses the value of a potential stock investment. The P/E shows the relationship between a stock price and its company’s earnings (or profits) per share of stock. Let’s say that the XYZ Company has a stock trading value today of $20 per share. Last year the XYZ Company earned $1 per share. So the P/E is 20 / 1 or 20.

“Great!” you say, “and what does that mean?” For starters, notice that the ratio expresses stock prices in terms of the earnings per share (EPS). The P/E ratio uses the earnings of a company to value that company’s stock. Earnings are indeed the inside track to valuing a company’s stock, and the P/E is a nice simple tool that quickly values a company off of earnings. Unfortunately, like any useful tool, such as the flat head screw driver or hammer, people have a tendency to grab it for use even for jobs where another tool would give better performance. The P/E formula most folks know from the financial sections of news papers and some Internet web services is actually a simplified version of the dividend discount model, which matters only in that the P/E ratio is a shortcut valuation technique that omits more than it includes. Specifically the P/E ignores risk and the time value of money. It also wrongly assumes a one-year snapshot of earnings is representative of the company’s sustainable earnings power. As a result, eyeballing a company’s P/E ratio to determine its value is a little like trying to figure out how much a car is worth by sampling the exhaust.

The P/E ratio must be interpreted within a context, and it should be used in conjunction with other analytical processes. So, a low P/E ratio doesn’t necessarily mean a security is undervalued, nor does a high P/E ratio necessarily mean a company is overvalued. We will discuss P/E and EPS more in-depth later, let us continue on with the basic concepts of investing first.

Another misconception is Penny-stocks. Some believe it is better to stick with lower priced stocks, rather than go for the higher priced stocks. Basically however the starting of this logic is wrong. Whether you purchase 100 $5 shares or 100 $75 shares, if you lose all of your money on them, then you still have a 100% loss ratio. A bad stock is a bad stock. Don’t let the price of a stock throw you, start with the question, “Is it a good stock?”

You are going to learn new tools and strategies all the time. I don’t believe I have seen a year go by that there was not some new book on stock picking strategies on the shelves. We just talked a little about P/E and EPS, but there are other common strategies. For example you could value a real-estate company’s stock not off its earnings but by using the value of its land. Dividends could be used to value a company that pays a large dividend more off of the value of its dividend than its earnings. Every year someone comes up with something new and there are volumes out there already full of strategies.

After reviewing enough of them to get an idea of the basics, find a strategy which works for you and stick with it. There are many ways to the top of the mountain, but all of the paths end in the same place. An investor who jumps from path to path often only reaps the worst parts of the strategies he jumps between.

I’m not saying that you should stop learning new strategies, or not to adapt your current strategy to a new technique if it makes sense to do so. What I’m suggesting here is to develop your strategy with care and then hone the technique over time. Second guessing yourself is the killer of portfolios.

The real tough part is that we are trying to make informed investment decisions on events and facts that have not happened yet. No matter what, at our best position we are still faced with glaring black holes in our information base. Yes, we have historical data and current data, but what really matters is the future, isn’t it?

A quote from Peter Lynch’s book “One Up on Wall Street” about his experience with Subaru demonstrates this: “If I’d bothered to ask myself, ‘How can this stock go any higher?’ I would have never bought Subaru after it already went up twenty-fold. But I checked the fundamentals, realized that Subaru was still cheap, bought the stock, and made sevenfold after that.” Keep the idea fresh in your mind that the future, really doesn’t depend on the past for its shape. Use your strategies by focusing on the future potential.

We just talked about Penny stocks, but I do want to point out that small-caps are not bad investments. Many great companies are household names, but there are several non-profitable investments floating around the household as well. From 1926-2001, small-cap stocks in the U.S. returned an average of 12.27% while the S&P 500 returned 10.53%. Many investors were thrown off the startup and small company investment during the Dot.Com era, but really what happened then was not that we were investing in small start ups, but that we forgot the basics of investing. A great many of the Dot.Com businesses had no earnings, and yet they were invested into anyway.

I guess what I’m reiterating here is that finding good stocks is not based on the size of the company, small cap or blue chip. General Motors is a great example, a blue chip stock currently going south in a big way.

It all ends with taxes, but that is not where it begins. Placing taxes or tax concerns into your investment strategies, is not a very good idea. Such a tactic can cause some very poor, misguided decisions. Tax implications are important, but that is not our goal, “to pay taxes”, our goal is to “make money”. Definitely find the ways to pay fewer taxes, less often. You should always attempt to minimize the amount of tax you pay and maximize your after-tax return, but the situations are rare where you’ll want to put tax considerations above all else when making an investment decision. Make the money first, and then worry about the tax man.

Posted in Beginners Investing, Different Ways of Investing Money, Diverse Investing, How do I start Investing, Investing Money, Investment, Money, Stock Investing, Stock Market Investing, Strategic plan for Investing | 5 Comments »