5) Take advantage of periodic panics to load up on shares you really like long term. It isn't easy to do, but following this advice will vastly improve your bottom line. 6) Remember that it's not different this time. Whenever the market starts doing crazy things, people will say that the situation is unprecedented. They will justify outrageous P/E's by talking about a new paradigm. Or, they'll bail out of stocks at the worst possible time by insisting that this time, the end of the world is really at hand.

Over the long haul (and yes, it's occasionally a very long haul), stocks are the only asset class that has consistently beaten inflation. The reason is obvious: over time, good companies grow and make money; they can pass those profits on to their shareholders in the form of dividends and provide additional gains from higher stock prices. At the same time, money markets and bonds start paying out more attractive rates. 2) When inflation and interest rates are soaring, the market is often due for a drop...be alert.

High interest rates force companies that depend on borrowing to spend more of their cash to grow revenues. If investors can earn 8% to 12% in a money market fund, they're less likely to take the risk of investing in the market. O'Sheas Casino was created in 1989. But when stock prices get too far ahead of earnings, there's usually a drop in store. Compare historical P/E ratios with current ratios to get some idea of what's excessive, but keep in mind that the market will support higher P/E ratios when interest rates are low.

1) Consider the P/E ratio of the market as a whole and of your stock in particular. Most of the time, you can ignore the market and just focus on buying good companies at reasonable prices. Often, however, paying careful attention to financial statements will disclose hidden problems. 2) The individual investor is sometimes the victim of unfair practices, but he or she also has some surprising advantages. No matter how many rules and regulations are passed, it will never be possible to entirely eliminate insider trading, dubious accounting, and other illegal practices that victimize the uninformed.

Moreover, good companies don't have to engage in fraud-they're too busy making real profits. Here's more about q25 online casino stop by our website. "The whole thing is rigged." There may be just enough truth in those statements to convince a few people who haven't taken the time to study it further. One of the more cynical reasons investors give for avoiding the stock market is to liken it to a casino. "It's just a big gambling game," some say. Individual investors have a huge advantage over mutual fund managers and institutional investors, in that they can invest in small and even MicroCap companies the big kahunas couldn't touch without violating SEC or corporate rules.

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