Investing Basics

Warren Buffett made billions with his trusted buy-and-hold model. But in the past 12 years, with investors battling abnormal amounts of volatility and getting burned in the dot-com bubble of 2000, the 9/11 attacks, the housing crash of 2006, the financial crisis of 2008 and the U.S. credit rating downgrade in 2011, many investors have chosen to abandon the buy-and-hold strategy to stay more nimble. Take a look at the… Read More

Warren Buffett made billions with his trusted buy-and-hold model. But in the past 12 years, with investors battling abnormal amounts of volatility and getting burned in the dot-com bubble of 2000, the 9/11 attacks, the housing crash of 2006, the financial crisis of 2008 and the U.S. credit rating downgrade in 2011, many investors have chosen to abandon the buy-and-hold strategy to stay more nimble. Take a look at the chart below for a closer look at how volatility has rocked the market ever since the dot-com implosion of early 2000 — it’s truly remarkable: S&P 500 Monthly Chart 1950-2012 This volatility trend has driven the growing popularity of technical indicators designed to help investors decide when to buy and sell stocks. Unlike fundamental analysis, which uses earnings, dividends and valuation, technical analysis… Read More

When it comes to investing, there is perhaps nothing more gratifying than unearthing a gem of a stock that turns out to deliver some very big gains. Companies like Amazon.com (Nasdaq: AMZN), Apple (Nasdaq: AAPL) and Google (Nasdaq: GOOG) are marquee examples of large-cap stocks that continue delivering large gains;… Read More

The markets are red hot this year, fueled by promising headlines about euro-zone stability and Federal Reserve interventions like Quantative Easing 3 (QE3). But is it a false sense of security? Are markets unknowingly about to be crushed by economic realities that are simply hiding in the closet?  While a… Read More