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Analysts - Do They Really Know The Stock Market?
When you become interested in a stockor mutual fund you can call your broker and hewill send you reports on how the company is doing,what their management is like and what might bethe projected earnings for the company and how theindustry is doing. Great information. You will apply yourself to this moundof papers to determine if you want to buy theequity. You might also send for more reports fromindependent analysts such as Morningstar. You willbecome buried in papers. That is what thebrokerage company wants. The reason is verysimple. If you buy the stock after doing all thatresearch and it goes down instead of up they arenot responsible for your stupidity. Of course, ifit goes up they can take credit for providing allthat great information. Now let's think for a minute. Youreceived all that information that was alreadyprinted so it could be sent to you. It makes meask when was that printed? How old is theinformation? If I can get all this stuff about thecompany it means that anyone can. What it boilsdown to is the information is just that -information and none of it will tell you that thestock will go up further because the whole worldknows. These brochures are made to help youBUY not SELL. In my years of experience I callthem a work of fiction. No brokerage company isgoing to issue a bad report about a company atleast until it is ready for bankruptcy and by thenyour investment dollars have disappeared. I know your next question. If I can'trely on those reports how am I going to buyanything? There is a better way. You will want tosee the price action of the stock or mutual fund.All stocks undulate as they go up or down and youwant to know the major trend. On the Internet you can go to a website www.bigcharts.com and type in the symbol ofthe stock or fund and request a weekly chart goingback for about to 5 years. What you are interestedin is what is it doing during the past 6 months toone year. If the trend is up it is a buy and ifthe trend is down or sideways don't buy it or ifyou own it sell. See how easy that is. Brokers andfinancial planners won't like it because it takesall the mystery out of buying stock and they don'twant you to know this simple procedure. Analyst reports give you lots ofuseless information, but will not tell if thestock will go up after you buy it. If it isn'tgoing up don't buy it. Al Thomas' book, "If It Doesn't Go Up, Don't Buy It!" has helped thousands of people make moneyand 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 doesnot want you to know.
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