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In today’s world, the term ‘Financial Advisor’ means little or nothing. Unlike in years past when your investments were advised, made, and handled by a Stock Broker with years of experience under his belt, that is no longer the case.
These investment firms actively solicit sales people by listing job openings on the internet and also contacting unemployed persons who have posted a resume on the internet.
Many times the unsuspecting investor is advised to invest in whatever investment product is currently paying the highest commission, or whatever the investment firm may currently have in their inventory that they need to unload.
regardless what sales presentation you are shown, it really does matter when you invest. You want to be getting in at the bottom, not the top.
If you want to invest in a mutual fund, do your homework. Demand to see a performance of the past 5 years, and the past 10 years. See how the fund performed in bear market times and during recessions.
Never rely on a Salesman for investment advice!
Because recognizing bear markets and appreciating and respecting their devastation is one of the most important things you can learn.
A financial advisor is not your friend. They are in sales.
His theory was that the health of these companies would mirror the health of the economy, and, as these company’s output and revenues changed, then the economy would change as well.
As the economy goes, so goes the stock prices. What’s more important is this. As an ‘indicator,’ the Dow Jones Industrial Average is a ‘leading indicator’ as to what is about to happen in the economy.
You must always invest and trade with the market, not against it.
The primary movement is what its name suggests, primary. This is the overall direction on a longer term basis.
Bear or bullish?
market pulls back.
Minor
The primary trend is the most important of the three trends. It is the granddaddy of the three trends, and will dictate whether you make money or not.
The only time you should be buying stocks, index funds, or mutual funds is when the primary trend is advancing. But even then, you want to get in on the early stages of the advance.
Each time the market pulls back, it does not go as low as it did the previous time and then makes a higher high.
After you first determine the primary trend, and it is advancing, then you can wait for a pullback (secondary trend) to buy your investment.
Risk your money when the risk is low and the reward is high.
“The time to buy is when there’s blood in the streets.”
bear market on the average of every three and one-half years.
an advancing bull market should last around three years before another bear market begins.
Market tops form after a long advance. The market seems to get tired and stops advancing and begins moving sideways.
market stops making new highs.
Volume dries up.
On days when the market moves back up, the volume is light. This tells you that the big money is not buying.
