5 Reasons to invest now

[mark004]

1: Never before in history have we seen such explosive growth of the middle class worldwide. This means brand new markets everywhere for everything.
2:History shows returns are much higher for a portfolio formed midway in a recession than one formed midway in a recovery.
3: Despite the market run up since March, takeovers are everywhere which means market pros are seeing good value in select companies.
4: Corporate bond yields are generous especially relative to treasuries
5: Dividends, which are responsible for half the long term return of the market, are very attractive in certain companies

Regards
mark04

 

[shadowninja]

Last summer, I bought Lehman, Fanny Mae, Freddy Mac, Northern Rock and Woolworths. Roll on, the good times!

 

[gooseman]

go on son-pay the high.

 

[GladiatorX]

5 reasons not to invest now;
1. The sun was celebrating the Dow hitting 10,000
2. The Times was talking about brokers celebrating the dow hitting 10,000
3. Volume is inconclusive
4. The time to get in was the pullback, not the new highs
5. It's earnings seasons; which generally causes less predictability. (Take Google)

(Y) The time to invest was when the stock market made a firm base; Not after the 50% rise. Thats just the time to admit your annoyed you haven't entered yet and enter out of greed.

 

[shadowninja]

I'm certainly annoyed I didn't buy in March but that would have been a gamble, nothing more.

 

[firewalker99]

I'm certainly annoyed I didn't buy in March but that would have been a gamble, nothing more.

No it would not have been a gamble. If you know to read a chart, if you know how to determine exhaust, and if you know something about timing, you would've done so like I posted in March:

http://www.trade2win.com/boards/general-trading-chat/32991-potential-setups-103.html#post685572

Dow was at 6560 when I went long...

The above was posted one day before the lowest point in the DOW this year, but if you look at the ES and NQ you'll see it market the bottom.

 

[the blades]

No it would not have been a gamble. If you know to read a chart, if you know how to determine exhaust, and if you know something about timing, you would've done so like I posted in March:

http://www.trade2win.com/boards/general-trading-chat/32991-potential-setups-103.html#post685572

Dow was at 6560 when I went long...

The above was posted one day before the lowest point in the DOW this year, but if you look at the ES and NQ you'll see it market the bottom.

Nice one. You must be an extremely rich man.

UTB

 

[firewalker99]

Nice one. You must be an extremely rich man.

UTB

Why? Because I put on one position long term on small size, not even on the futures?
No, you don't get rich overnight. Trading is hard work, each day. If you put all you're money into one trade, you're just gambling.

 

[the blades]

Why? Because I put on one position long term on small size, not even on the futures?
No, you don't get rich overnight. Trading is hard work, each day. If you put all you're money into one trade, you're just gambling.

twas slightly tongue in cheek but makes my point that however easily it's made to look, however easily charts can be read, it's not easy. With hindsight it looks like the opportunity of the century. But many of those seemingly 100% ITK only dare make a small, non life changing punt.

UTB

 

[firewalker99]

twas slightly tongue in cheek but makes my point that however easily it's made to look, however easily charts can be read, it's not easy. With hindsight it looks like the opportunity of the century. But many of those seemingly 100% ITK only dare make a small, non life changing punt.

UTB

That's true, but my point was only to illustrate that it's not gambling.

Anyhow, with DOW at 10K every man and his dog will want to get back in stocks I guess... and we all know what that means...

 

[GladiatorX]

That's true, but my point was only to illustrate that it's not gambling.

Anyhow, with DOW at 10K every man and his dog will want to get back in stocks I guess... and we all know what that means...

Trends exist as the people with less and less of a plan decide with emotions when to enter, after so much 'missing out', they finally enter out of greed, this continues for a while;
Starting with institutions/proffesionals with their plans
Continuing with smarter investors/succesful traders with their plans
Continuing with the decisive gamblers/emotional traders/those who think they have a plan
Continuing with the delayed, fearful and scared of a market ending public who have been watching it rise in fear it'll stop and have finally had enough
Continuing with the delayed, naive public who heard about it somewhere and may aswell put their money on, having heard it in a place; Which it only gets stated, when a significant trend is already in place...

The last, most fearful and emotionfull, planless traders finally enter as the Sun tells them too and there is no1 left...
The institutions/proffesionals may then decide whether to buy the pullback or not and right now; In looking at the VIX; it would seem proffesional risk-profile has returned to norm.