Global Market Rout? What Action to take? Opportunity of a lifetime?

Sub prime crisis, global stock crash, black Friday, global credit crunch......; I am sure you have read all the bad news last week! It was black October for many stock investors as the market falls significantly last week. Is this the end or beginning of an opportunity? The answer depends on your risk profile. If you are about to retire now or need to take out your money from the stock market now, then you stand to lose a lot. If you have investment horizon of at least 2 to 3 years then your risk of losing money will be very much lower. Yes, the stock market has gone down quite a lot this year, money is out from the investors pocket but where are the winners? The money has to be with these people and will definitely finds its’ way back to the investment market sooner or later. Investor’s sentiment today is the same as in 1974, 1989 and 2003. But look, what happened after all the great bears market; the equity market actually moved to record high. Over the last 60 years there are 13 bear markets with the average length of 13 months and average fall of 29%. But there are also 13 bull market with the average length of 3 years and an average gain of over 90%. If you have investment in some good equity stock, you can gradually average it down by buying whenever the market dips. Its’ time to invest more into the market! Related post on Investment http://peteformation.blogspot.com/2008/09/investment-who-wants-to-be-millionaire.html http://peteformation.blogspot.com/2008/06/book-review-investment-neatest-little.html

Investment and Financial Management - Who Wants To Be a Millionaire?

Here are some interesting figures on how you can achieve your target of one million dollar! Save $500.00 monthly for 30 years (accumulated amount) If the return is 4% per annum, the final value will be $347,025 If the return is 6% per annum, the final value will be $502,258 If the return is 8% per annum, the final value will be $745,180 If the return is 10% per annum, the final value will be $1,130,244 Sounds easy? You will have to look for an investment vehicle that can provide you with consistent returns and manage your investment risk properly. Always remember, investment is something that is long term. Timing the stock market for quick profit and short term is risky, just like gambling. It is always a good practice to save first before you spend every month. If you are unable to even make ends meet every month, that means you have either over spent or did not manage your finance properly. Do not overcharge your credit cards. I spoke to some people that provide debt restructuring services last month and they told me that most of the bankruptcy cases are from the people that did not manage their credit cards spending properly. If you are unable to save $500 every month, you can create it by looking for a secondary income stream. Time is the essence in investment, so start working on your financial plans early! Check out new vegetarian recipe post at my vegan recipe blog http://veganformation.blogspot.com/

Book Review - The Neatest Little Guide to Stock Market Investing (Jason Kelly)

Book Review (Investment) – The Neatest Little Guide to Stock Market Investing. Author: Jason Kelly I have just finished reading this book. The content is very well organized and easy to read especially if you are new to investing in the American Stock Market. It provides an insight to how the stock market works, how to evaluate stocks, charts and also advice from investment gurus like Warrren Buffet and Peter Lynch. Jason also covers investment strategy, online resources available and how to choose online brokers. There is also a review of services offered by online brokers. I like the part in the Appendix – What You Should Retain from This Book. This part provides a summary of important points mentioned in this book and can be used as a quick reference. If you are looking for a comprehensive guide to investing, this is your book. Click this link for more details Related post on Investment http://peteformation.blogspot.com/2008/09/investment-who-wants-to-be-millionaire.html http://peteformation.blogspot.com/2008/10/global-market-rout-what-action-to-take.html