This song reminds me of those early days when I met the international investor Warren Buffet. The context of his name reveals the mechanism of the stock market: Those who arrive early at the buffet table are the ones who will grab the good food and the one who will make money from stocks, by selling common stock shares to those who come into the stock market late in the game. Yes, it is a game as the large number of individuals bid for ownership right of a limited number of stock shares, driving up the market value per share. As earning interest rate on banks Money Market Savings / Statement Savings accounts remain historically low since 2008 and investment in housing still poses certain risks, most people have turned to NOWHERE ELSE but the stock market to make additional earning from investment. Many of them still do not realize that IT IS MORE OF A GAME THAN INVESTMENT IN BUSINESS OF A COMPANY OR A RESEARCH & DEVELOPMENT EFFORT THAT REQUIRES CAPITAL FUNDS. The Dow Jones Industrial Average has advanced from $7,063 on February 01, 2009 to $17,554 on January 21, 2014 - increases more than double its value over a period of six (6) years. This current value is then compared against the average book value for market capitalization. But when it is way too far from the book value and when it has thrived on AN UNHEALTHY BANKING SECTOR (interest rate too low banks cant sell savings products and the credit market is way too dry), IT WILL SOON BURST. If you are entering the stock market today, make sure that you diversify your investment portfolio and be sure to reserve your cash flow in guaranteed funds to minimize the impact should the next financial bubble occur. finance.yahoo/echarts?s=%5EDJI+Interactive#%7B%22range%22%3A%2210y%22%2C%22scale%22%3A%22linear%22%7D
Posted on: Thu, 22 Jan 2015 03:36:05 +0000
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