Today’s Topic: The Stock Market, What will happen Now that the FED rate is at 5.25 Percent

This is something that I have written about before but nobody paid much attention to it. Perhaps this was due to some of the recent declines in the stock market.

But now we just saw a big jump in the Dow Jones and other indicators. So when will we see the Dow surpass 11,800? I really think we will and soon.

The recent declines are like smoke screens, made to conceal the true potential of a roaring bull getting ready to run! Usually this is the game that market makers like to play. It forces short term traders to bail out so larger investors can take more profit. This helps to conceal the institutional buying by some of the big guys. This always happens, and it helps keep some day traders on the edge of there seats.  I still trade occasionally, but I avoid many of the big mistakes that I made several years ago. First I tried to day trade with too little money. My advice is that if you do not have over 25,000 to day trade with, don’t do it. The brokers will let you for 3 day a week, but there is a reason for the 25 K rule.

The other thing was that I used to trade volume spikes. And finally the worst thing I did was use margin too much.  In the end the brokers and market makers, had lots of fun with me. 

Now I only trade long term and with stable stocks. This way if the market goes down for 5 days in a row, I do not have to worry about my stock turning into a pile of dust. I know the companies are doing things to make money. You cannot say the same with certain low dollar or penny stocks, the ones that pop up out of nowhere on the Stock TV channel and they rise by 50 percent in 2 hours before the news. Then when you buy them they pop like a balloon, never to return to that price again.

I like to watch the economy as a whole. Not just stocks, bonds or real estate. I like to monitor everything even politics. And right now I am even more convinced that we are looking at some bright times for the stock market. One of the reasons that I feel this way is because of the money movement strategy.  I have worked for several large corporations and I know that this is the way things work.  If you have a good business, you will find ways to make profit in any economic situation. So now that the Fed interest rates are rising and real estate profits beginning to decline, big companies do whatever it takes to survive. I see a lot more real estate retention, more leasing and at the same time, slightly more interest in the stock market. I first learned about the money movement strategy several years ago while reading a book from the late Charles Givens. Some people may not agree with all of his ideas, but that one is the best. I also like his ideas about using credit, equity and tax savings to calculate the risk of investments and to help you save money and build wealth. If you want to learn more about this, go to a library or book store and pick up his book: Wealth without Risk.  You can also read about the money movement strategy at my website.http://www.nobodytosomebody.com/investing.htm  

  

 

5 Responses to “Today’s Topic: The Stock Market, What will happen Now that the FED rate is at 5.25 Percent”

  1. Mike Bown Says:

    I’m not sure I really agree with what you have to say.

  2. David Says:

    OK, Thanks for you opinion. But do you at least feel that we will be able to top 11,700 Soon? It has been 6 years now!
    Is our economy that weak?

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