Timing investments surrounded by the stock marketplace or buy and hold?
Question:
Which approach do you believe will lead to highly developed average returns and why?
Answer:
Timing the market (active investment) can organize to much higher returns, if you believe you enjoy similar skills as Warren Buffet or George Soros. While stock market returned 9% surrounded by the last 60 years, Warren Buffet achieve over 20% annualized return for 60 years! But statistics shows that the vast majority of live investors under-performed the market. If you do not enjoy the time and research to successfully time the market, afterwards passive investment (buy and hold) is the approach to go.
There is merely two problems with souk timing. One is to get your timing correct. It is exceedingly difficult to do. Another problem is the tax implication. Every time you sell and engineer a profit you have to fork over a intensely large percentage to the leaches.
Of course the buy and hold strategy also have some disadvantages also. It is very depressing to be holdings a stock as it is loosing 50% of its meaning.
To tell you the truth, I am not sure which lead to a higher average return. My suspicion is that a broad buy and hold policy but modified to emulate market overexuberence should contribute a better return.
It is really tough to continue holding a stock that have given a 100% return. The inclination is to take your profit and run.
Studies will show that a buy and hold approach yield greater returns than attempting to time the market. However, as long as no two investors are like peas in a pod, different things will continue to work for different individuals. On a personal basis, I am a buy and hold investor, buying securities that are undervalue and selling once the stock appreciates to the point that I feel they are correctly valued.
Warren Buffet is the best known buy and hold proponent and probably the most successful investor contained by history. Repeated academic research have shown that 80% of the fund managers of actively manage mutual funds (probably the best professionals), fail to smash the index trackers. What makes you feel you can do better?
Timing the market is fiction created by the investment companies to prove their fleecing their customers by exorbitant charges. It works.
According to Ibbotsen studies a market timer will hold to guess right 75% of the time in demand to equal the return that a buy and hold investor receives. I own never seen anyone to be exact right 75% of the time when it comes to something that they can't control.
You may want to try another type of investment where timing is not crucial and there is no guess work..
please click on http://www.4xmoneytrain.com
You'll be glad you did!!
Both.
What is the utility of a 1892 susan b anthony silver dollar?
Question:
Answer:
Maybe a few cents to $1... they were lone minted between 1979 and 1981, and again in 1999, so it's a phoney.
Zero, since the SBA dollar was not made within 1892
It's evidence that someone has a time domestic device. The Anthony wasn't minted until 1976. I think you own a Morgan Dollar. Check this out.
http://en.wikipedia.org/wiki/morgan_doll...
If it's engraved with the date 1892, it's a fix. If it's a genuine Anthony dollar, you own a very sensible coin, it's worth a buck anywhere.
http://www.susanbanthonyhouse.org/dollar...
Here is a site with information just about SBA coins.
No such thing !!
... and if you made a typing error and intended 1992 well you are still out of luck since in attendance were none struck surrounded by that year.
Hang on to it and show the nearest dealer for you may enjoy a collectible counterfeit on your hands and the right individual will pay heavily for it. Get at most minuscule 3 appraisals before selling.
I am a daytrader, what book will lend a hand me be a better trader??
Question:
Answer:
Gump & Co. by Winston Groom.
The Complete Idiot's Guide to Daytrading Like a Pro, 2nd Edition (The Complete Idiot's Guide) by Peter Sander
After I read this book, I decided not too.
http://4xgenie.com works for me...promo code for free trial is MSMS555
What happen to the customers' mortgages when the lend company go out of business?
Question:
http://quote.bloomberg.com/apps/news?pid...
Answer:
They are sold to other lender's. This happens adjectives of the time, anyway.
The new lender's must stick to the same provisions of the loan. However, customer service may be better/worse.
In extreme cases, the rule can takeover the loan. However, surrounded by a case approaching this, it's doubtful.
The new loans will possible be easily purchased by others simply because they can turn at a bargain price.
Are you chitchat about NEW CENTURY FINANCIAL?!?!?! They hold lost me quite a nouns
Goodness it is I just saw the article! Yea doomed to failure investment on my part.
All assets, your loan is an asset, placed contained by the control of the court. You will be notified where on earth to make payments ASAP. Usually you will be ordered to convey your payments to the court appointed trustee.
The sale is handle by the bankruptcy trustee and usually sold by auction or bid. Several loans conceivably bundled and offered to potential buyers. When my previous lender was sold the brand new owners sold hundreds of the loans. They were bundled within groups of 100 and sold to other mortgage lenders.
The assets are sold to pay stale the creditors. Your mortgage is just one of those assets. Some company will buy it out of liquidation and you'll start mailing your payments to them instead.
Working contained by this business, the mortgage loan will go to the company that will buy their business to be precise why on your loan papers you will see ISAOA which means its Sucessors and or Assigns, explanation that if the company either sell or goes penniless that the company that buys will get adjectives the customers data underside and loans that are out. You should not see any changes for your billing except the company pet name.
Don't get your hopes up.
You still hold to pay the mortgage. The mortgage is an asset of the company and will be sold to another company to settle up the creditors.
Nothing. They keep paying the mortgages. The one-time company's creditors simply take over, and the company continues to operate. Sometimes, creditors provide the mortgage portfolio of the failed company to another company, within which case the buyer of the mortgage portfolio become the lien holder.
typically they're sold to another lender.
whazzabi
Anyone watching ?
Question:
the stock market? WHAT member if any ; do you think you , " share "; after you compare ggogle & (beloved ) Yahoo ? A flat smudge often indicates a code Blue...any thoughts ?
Answer:
I am watching the stock open market. I might consider investing in yahoo, but I would requirement to see it fall further. The PE is still awfully high. If you are looking for investment concept, you should see what the best traders are buying and selling. This is the idea trailing http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks near $100,000 in "play" money. Each afternoon the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as resourcefully as share your own investing ideas.
Here are this month's best traders:
http://www.top10traders.com/top10standin...
Good luck!
Can I divide total portfolio risk by using the weighted average of the std (risk) of respectively stock?
Question:
Let's say I enjoy a portfolio made up of 20 mutual funds. I have the std (risk) of respectively fund. I want to calculate the over risk of the portfolio. Is it statistically correct to subtract the weighted average of the standard deviations (sum of (std * dollars at that std)/ N) in establish to obtain a approximation of the overall portfolio risk? Can I after do the same next to historical returns and use (weighted std * weighted return * porfolio value) to obtain the length of expected returns? How can this information then be used to multiply the expected draw down at one and two standard deviations?
Answer:
No. The formula is much more complex. For a two-asset portfolio, the variance of the portfolio, vp, will be a function of the proportions invested in the assets (x1 and x2), their return variances (v1 and v2), and the covariance between their returns (c12):
vp = ((x1^2)*v1) + (x2^2)*v2) + 2*x1*x2*c12
With 20 assets, the formula will be even more confusing (about 20 times so).
You requirement to employ an alternative strategy. Build a time series of your portfolio appeal, compute periodic change in that helpfulness, and calculate standard deviation of that transmutation.
To calculate the std of a portfolio, you inevitability to take the sqrt of the portfolio variance, which for a 20 asset portfolio is rather complicated to calculate in need a spreadsheet model. Check out this Wikipedia site for more info on the actual calculation: http://en.wikipedia.org/wiki/modern_port...
Please see answers below **
Let's enunciate I have a portfolio made up of 20 mutual funds. I own the std (risk) of each fund. I want to figure the over risk of the portfolio. Is it statistically correct to calculate the weighted average of the standard deviations (sum of (std * dollars at that std)/ N) within order to search out a approximation of the overall portfolio risk?
** Unfortunately, no. To determine portfolio risk we need to introduce the concept of correlation. Take an extreme example: if a portfolio have two securities, and they both have like peas in a pod standard deviation. But, the securities were faultlessly inverse correlated, when one went up, the other go down by the same amount. This portfolio would hold no volatilty. To determine portfolio risk, there are undesirably more complicated techniques required that are available contained by portfolio management software packages.
Can I later do the same near historical returns and use (weighted std * weighted return * porfolio value) to obtain the collection of expected returns?
How can this information then be used to add the expected draw down at one and two standard deviations?
** ** Again, no. To project a range of expected returns using historical returns, within addition to correlation, we want to take into depiction the fact that historic performance is one and only one possible path through time, and, similation technique will provide a better probability based gamut and disperstion of returns which can then be used to estimate drawdown.
verify my long stock investment strategy for $100K?
Question:
I have $100K to invest contained by the market (it's my retirement pensioin), I'm 46 yrs prehistoric.
1)Thinking NO mutual funds
2) Diversify between:
-Banks (financial) say ticker "TD.TO" on Toronto (banks other make money, TD is a core player and seems slightly undervalue. w/low PE and pretty good dividend)
-Oil exploration ticker "SLB" on NY (Schlumberger is established near real aggressive 1yr target, low PE and upright dividend and major player next to pretty good record)
-Energy vote ticker "ABB" on NY (ABB because they have come out of the LOW Dark times after settling the leading class action suit, they are switch players in the dynamism field within emerging countries
3) 33% for each to give up $$ on increase
4) I'll go long and hold no problem
5) I am holding "NT" (lots of it) and I wonder if I should dump, when it looked bleak, I simply thought I would hold for 10-20 yrs till it gains subsidise some ground, I am interested in comments about NT, I bought at about $10 it's immediately around $2.50
?
Answer:
I don't think you are suitably diversified. Most advisers will recommend you enjoy more than 3 stocks. Stocks are very sturdy to predict. When you bought NT, you didn't expect it to drop 75%, but it did. You have to consider the possibility that two of your stocks could nosedive, simply like NT did. Sometimes a stock will crash and never come stern. I would recommend at least 10 stocks, contained by a variety of industries.
In enclosure, while many mutual funds charge too much, Vanguard.com have some low expense, no-load funds that don't charge much. You might consider putting half you money contained by a mutual fund for diversity, and half within stocks you like.
I also disagree near your statement "banks other make money." There enjoy been various banks that enjoy failed over the years. Savings and loan companies, which are similar to bank, had a extraordinarily rough time a few years back, and several failed. Not that I expect TD.TO to founder, but you never know.
I wish you the best of luck.
It is my belief that your proposed strategy threatens another NT disaster. Splitting 100k between only 3 companies is extremely risky. Much more risk than your retirement funds should be subject to. If you are adverse to mutual funds, you should invest contained by no fewer than 10 different companies and preferably as masses as 20.
Your 3 stocks are good choices within general. Now come up beside at least 7 more. Here are a couple of suggestions to consider.
CHL, SAY, MMM, JNJ, MET, CAJ, COP.
Notice that nearby are 3 foreign stocks. That will provide some geographic diversity.
Now you say you do not desire any mutual funds but there are constant funds that you really should consider. They will add diversity. Index funds are an inexpensive method to create that diversity. Consider a mutual fund that invests in small sunhat stocks to improve your overall asset allocation and also funds for geographic diversity. For example, swz, tdf, iif, chn.
So you are chitchat $33k for TD (also on the NYSE), Toronto-Dominion Bank (nice performance numbers), beside something around 560 or so shares; $33k for SLB, Schlumberger Ltd, with somewhere around 480-ish shares; and $33k for Swiss power and automation tech company ABB for for a moment over 2,000 shares. I generally trade for full blocks (100 shares) and don't know what your brokerage fees are (Scottrade's $7 is nice and you can do uncommon lots at no extra charge).
But you have an undisclosed (it is extra, isn't it?) amount of Nortel Networks. Funny, you bought it at almost the price I sold it ($8 something) a while put a bet on, so you didn't get my shares. I could enjoy had it for in the order of 50 cents but balked even though they had several billion within cash, so it could own been an even better profit for me, but I'm delighted. Its a good company so it will reverberation for sure.
At any rate, your choices probably won't embarrass you much. They aren't on my short list, but that doesn't be going to much. Good luck.
I have a conditions in equity option, and not in equities themselves. Here are my thoughts.
You are 46, beside 100K. You have 19 years until you're 65. I mull over you should have more than three positions, from a risk assessment point of scene.
Regardless of your view on risk, you didn't verbalize about an exit strategy. It sounds approaching you have an entrance strategy (I don't know much just about SLB et al) but your analysis is not 19-yr type of analysis, it seems more approaching 6, 12, or 18 month type of analysis. It seems approaching that type of entrance strategy should have an exit strategy to usher it, and you have none.
I similar to your portfolio, expecially SLB. With oil becoming harder and harder to find, I believe the grease service companies will be the best place to invest, since more and more of their services will be needed. I have invested within MIND and BTJ, because I think 3d seismic map companies will also be important as grease companies seek to map out where on earth oil field are, especially offshore fields.
If you are looking for investment planning, I think the best entity to do is see what the best traders are buying and selling. This is the idea at the rear the site http://www.top10traders.com - this is a free site that lets you create a portfolio of stocks next to $100,000 in "play" money. Each year the site ranks the best performing portfolios, so you can see how your picks perform compared to other investors. You can also read posts on investing from the best traders, as economically as share your own investing ideas.
Here are this month's best traders:
http://www.top10traders.com/top10standin...
Good luck!
A much safer substitute for your pension is to use ETF's. This will save you into the areas you think are going to do very well, but reduce the single stock deficit of diversity. For banks- IYG- financial services ETF. For oil/energy - XLE. Pick a few others that you think own long term potential, or in recent times go beside SPY or DIA to cover the more general marketplace. The original conception of only 3 individual companies for your retirement income is a very risky scheme.
I would suggest PVX as an energy possibility. It pays a dividend every month and the % is not to shabby. The price go up and down a few dollars but not to much. The constant monthly dividends, make for some great compounding. I'm not too hot on your Banking choices. Banks don't other make money. I"m not fond of bank in broad. Just my 2 cents worth.
I am in a simliar situation and I suggest that unless you are likely to spend 60 hrs a week doing this, then you consent to someone else handle it.
If not afterwards I will share my strategy. I hold only 1 stock at a time. I don't not examine it for more than a few hours at a time at the worst. I tolerate nothing beneath 3% net distrustful. I sell at 20% gain regardless. I deal in at 5% if I am uncertain. I hold a stock for maybe a week. I have leapfrogged $80k this track. It is extremely risky and I spend perhaps 70+ hrs a week doing it. Criteria are highly important. I am what you would ring up a day trader. My portfolio is up 62.3% YTD. I am sharing adjectives this because I believe it is the only road to make considerable gains within the stock market. Making small gain should be nearly risk free and I see your 75% drop and hurt. Be cautious, want professional advice for your money in the past it has dwindled and 2% no longer medium $2,000. The stock market is suggest, and it will eat your retirement minus a flinch.
Your portfolio is one of the worst I have ever see in my entire go.
I am a Portfolio Manager with over a decade of experience (This process I have see a lot of portfolios)
I am inclined to help you for FREE because beside those holdings you are not going to make satisfactory money to survive another 40 years.
Top 5 Answerer.
Does anyone know which stocks are the most widely held by mutual funds?
Question:
Answer:
I don't know for certain, but I can produce what I think is an excellent guess.
MSFT is held by 1547 institutions
Growth Fund of America owns 2.5 billion worth
GE is held by 1500 institutions.
Vanguard 500 Index fund owns 3.2 billion worth.
XOM is held by 1471 institutions
Vanguard 500 index fund owns 3.4 billion worth
C is held by 1411 institutions
Vanguard 500 index fund owns 2.3 billion worth
Those are my picks.
turn to costco.
I would assume the blue chips like Microsoft, Coca Cola, etc.
I hear a professor say the other hours of daylight that if we had GE stock it would be considered a mutual fund because of adjectives the different products they make.
Investors Business Daily (investors.com) posts that immensely list on a regular font.
Go to Yahoo! Finance page for any stock, and click on the link for "highest holders." It will tell you what mutual funds own the stock and how masses shares. You can also go to the Yahoo page for a highest mutual fund and click on "holdings" to see the top ten holdings of the fund.
Why did the San Francisco mint stop minting coins?
Question:
Answer:
It doesn't produce the generally circulated coins, but does mint proof coin sets. Mostly it is a museum. The mint be closed in 1937 (hint, it be a depression year) and reopened at a new location. It used to manipulate about a third of the nation's gold ingots and silver (hint, a lot of it be mined and refined contained by California and nearby Nevada, which be why it was open in the first place) and made coin and currency for other countries. Look for "San Francisco" surrounded by the last correlation for examples of this latter fact.
If I remember correctly, they be producting coins that were not impossible to tell apart as the ones being produced by the mint surrounded by washington.
Also, at that time counterfieting, even of coins was ramped so the best course to counter it was to produce coins from one internal location only.
San Francisco still mints proof sets. The regular proof sets as powerfully as the silver sets are produced there. Very nice stuff!
How to go through the correct course of SSS CONTRIBUTION? THIs is the sss contribution-SSS CONTRI 0705516268 12 09 46
Question:
its about the SSS CONTRBUTION
Answer:
i guess you better go to their website...
in that you will see your sss contributions.
go to http://www.sss.gov.ph
consequently click "online inquiry"
type in your sss number, your surname and your birthdate
"SSS Contribution" (leave the quotes)
Philippines Social Security System?
Click below to run to their online inquiry service:
What is the description of IRA and FRA ?
Question:
Answer:
The IRA (Irish Republican Army) is a name used to describe several paramilitary movements contained by Ireland in the 20th and 21st centuries, though the first specified use of the term occur in the Fenian raid on Canada in the 1860s.
(FRA) or fixed-wireless access
@
nouns, a forward rate agreement (FRA) is a forward contract in which one participant pays a fixed interest rate, and receives a floating interest rate equal to a mention rate (the underlying rate). The payments are calculated over a notional amount over a certain spell, and netted, i.e. one and only the differential is paid. It is remunerated on the termination date. The reference rate is fixed one or two days previously the termination date, dependent on the market convention for the selective currency. FRAs are over-the counter derivatives. A swap is a combination of FRAs.
The meaning of IRA is individual retirement sketch. it is where you put investments that are set aside for retirement, when you are contained by a lower tax bracket. You can give somebody a lift it out early, but most promising will have to foot a fee. I enjoy not herd the residence FRA before.
FRA is the forward rate agreement described contained by above article.
Usually IRS is the term that relates to FRA.
IRS stands for interest rate agreement, which is consisted by FRA beside different maturities.
Please search G00GLE for more details roughly speaking the definition and how they are used.
Hi, i suggest a great site with plenty of Issues related to your Investing and everything around it. it also provide clear and accurate answer to various common question.
http://investing.sitesled.com/
I am sure that you can get your answers surrounded by this website.
Good Luck and Best Wishes!
thinking of buying a small retail store. is it suspicious that the owner requests to put up for sale after around 3 yrs?
Question:
the owner is asking $89k for the retail store. the store is nice and the location is good. as you would expect i'm going to meet beside her and ask for all the documents needed surrounded by making this decision. i've talk to her broker and from waht she told me her cash flow is more or less half the asking price. my friend think it suspicious that she would want to sell her store after merely 3 years. the broker said she is selling because she is moving, that's why i don't think it's so suspicious. i would be going into this traffic with 2 other population, so financially it's not too bad. i'm 25 and touch i have zilch to loose. 2 of us will continue to work and progress to school and the third will stay at the store most of the time. i would simply like to capture other people opinion, experiences.
Answer:
so she's asking 2 times her cash flow as an asking price? that alone is wrong. most who want to put up for sale their business ask for 1 year of profit, not 2.
nextwhy is she not just moving the company instead of selling it? to be precise a red fleg as most would just any move the company and continue it or they would create a 2nd store contained by the new location departing the original location still running.
I would check into city plans to see if possibly some new road is coming through, if some investigational project is being planned within the next few years that will hurt or crush this business, etc.
Don't listen to her broker as its surrounded by their best interest to protect their client...not to help you. I would own my own attorney look over it all, enjoy my account look over it adjectives and I would ask for complete P&L's for every year in business.
If this paperwork is not given over..RUN FOREST RUN.
everything going on for Real Estate is
LOCATION, LOCATION, LOCATION
think something like it when you do the transaction
I am also free for consultations at serginho_pool@yahoo.com
I don't think selling after three years is suspicious. It sounds approaching she has a legit origin to sell.
Before you sign anything, yak to an attorney. There is a lot of money involved and it is better to be risk-free than sorry.
i agree with you...if the store is contained by a good location and you enjoy the will power and can get great products to put on your shelves, later it shouldn't be a problem. My cousin owns a small retail store and it seems to be abundantly of work (meeting with vendor, shelving, hiring, shipping, accounting, etc.) but if there are three owners, I don't see a huge problem.
Is it profitable? If it is not profitable, do you expect you can do better? If you feel you can do better, next buy it. Get a lawyer involved to ensure the transaction is legit. Although you are individual 25, you always enjoy something to lose. You can be buying some business that has no adjectives of making any money.
You are wise to ckeck into the situation since commiting to buy the store. Keep in mind even books can be fake, and once you sign on the dotted line, the store and it's liability are yours,
Most people wont deal in a store that is doing thoroughly well, even if the nouns seems flawless, doesnt mean that the flow of customers is plenty to pay the mortgage and overhead, do your resaerch on the areas customer flow by discussion to other store owners and employees surrounded by the area and you and your friends should call in the store as much as possible during operating hours to see for your selves what business is like surrounded by th area, past purchasing it , 89k is a 'big' investment even for 3 people, if you cant discharge the mortgage or other bills.
I currently run own a convenience store. How is the store doing and what did the owners do before they run the store? This business is very time consuming and a store of that size probably can not afford to own many if any body if it is to turn a profit.
The bottom line is this: If you stipulation to ask random inhabitants for free advice to craft a business decision, you should not be buying a store.
You are paying two times lolly flow for a small retail store. Can you grow it? Do you have a plan? How are you and your partner going to make decision? What do you mean by financially not too fruitless? Are you better off investing that money contained by your education and doing something after you finish institution?
Could you open like peas in a pod store for less money and grow it to this plane pretty quickly?
Be vigilant you don't strap yourself with a business to be exact smaller than you want that takes adjectives of your time and money.
You really have to see the 1997 picture "Karakter" before you jump any further.
What is the intent of "MTN notes" (Medium permanent status notes) ?
Question:
Answer:
Medium Term Notes refer to a special kind of bond that can be tailored to the wishes of the purchaser.
The issuing company registers a certain amount of the debt next to the SEC -- but does not issue the debt. This is called "Shelf Registration." The investment mound then uses this as inventory. When someone requests to buy debt with a parenthood of 5-10 years, the I-Bank can offer the MTM. They will deal in the amount that the investor wants to buy (up to the limit) and will structure the later life based on the wishes of the investor and set the coupon using prevailing rates.
The advantages to the issuer: Since the sale is spread out over time, they can receive fair rates. If they issued adjectives of it at once, they increase the supply too quickly and depress the price. They also free on issuing costs, since the shelf registration is cheaper to do than a series of registrations.
The advantages to the I-Bank: They have inventory lacking having to help yourself to on the interest rate risk of holding inventory. They can sell it more effortlessly, because they are able to tailor the deal to suit the buyers.
Advantage to the purchasers: They get a neutral rate on a bond tha matches their exact requests. If they want a 5-year bond, they get it -- if they want a 7-year bond, they receive it. One negative is that the MTMs are not as gooey as other bonds -- but this is rarely a problem for colossal portfolio managers.
A minute is usaully a structured financial product. It contains values, with language, such as expiration date, notional principal amount, conditions.etc.
You may take it as some concerned of bond, but is not issued by government, but investment dune, usually it restructured the cash flow, fee date, and maybe contained by an universe form that is tailored made to investors.
what do you vote for b.f utilites shares should i hold?
Question:
Answer:
i don't really understand what you are asking, could you be a touch bit clearer?
a bharat forge gr share
hold with stop loss of 2500 & 3000
hold it, it would turn to 5,000
In a given year can I contribute to both (my employer's 403(b) and the IRA I set up myself?
Question:
My employer has a 403(b) and I set up an IRA justification in 2006. Can I contrbute money to both this year?
Do I call for to max out the contributions to 403(b) before totalling money into an IRA?
If I can only contribute to the 403(b), but I've already put money into the IRA this year, can I still write it stale on my '07 taxes?
Thanks,
David
Answer:
Both? Yes
Max out first? No
you can do both, i do
...depends on how much you make