We are already in it, but you can't see it. It doesn't look like the one we had in '99. Like the magician who has you watching what he wants you to and with the other hand he is doing something else that is what is happening in the stock market today. The magician is the Dow Jones Industrial Average, the Nasdaq or the S&P500 Index. These have John Q. Public mesmerized.
The Nasdaq has given back 63% of the rally high since September 17 low while the DJI has only sold off about 18%.
As you see these averages going almost sideways or down and your own stock and mutual fund portfolio is doing the same so you come to the conclusion that the market isn't going anywhere right now. But there are hundreds of stocks making new high prices for the year just about every day. In fact, the majority of stocks that compose the S&P500 are higher. Why aren't yours doing the same?
Analysts separate stocks into different groups that they call sectors. There are mutual funds that buy stocks associated with these sectors and then the funds are separated into categories called peer groups. If you are not in the strongest peer group you are not making money, but you know that. Or did you?
Picking an individual stock that will double in a year is very difficult so I don't recommend you try. Instead look to see which are the strong peer groups to try to find a no-load mutual fund that is doing better than others. There are lots of them when you know where to look. This going to take a lot of work so I get someone to do it for me. He is an expert. A stock professional. A manager of a no-load mutual fund. No-load because I don't want to pay commission.
Some mutual funds are limited by their charter as to what they may buy so you can't go with them. Others do not have these restrictions. You limit your selection to these. There are 3 that are very outstanding now ? the Small Cap Value, Mid Cap Value and Real Estate peer groups. They are all in double digit profit territory while most mutual funds as a group seem to be going sideways. These can be most easily found by searching on the Internet or calling a discount broker to see if he will get you a list. Most of them do not want to do the work for you especially since there is no commission involved. If you care about your money you will do you own searching.
Making money in the market is all about being in the right place at the right time, but no one is going to do it for you.
Al Thomas' book, "If It Doesn't Go Up, Don't Buy
It!" has helped thousands of people make money
and keep their profits with his simple 2-step
method. Read the first chapter at
http://www.mutualfundmagic.com
and discover why he's the man that Wall Street
does not want you to know.
Copyright 2005