New Investment Info For You
Welcome to New Investment Info For You!

Finance Articles


Acapulco - The Stock Market Dives
By Al Thomas


There is a famous cliff on the ocean in Acapulco where experienced divers jump into the sea. It is very dangerous because the water at the base of the cliff surges from a depth of 2 feet to 12 feet. The diver must time his leap so the water is at the greatest depth when he enters or he could easily be killed as many novices before him have been. Timing is the key.

This reminds me of the stock market where timing is also the key to wealth or poverty.

The ocean waves surge in and out against the cliff in short cycles. The tide moves in and out in longer cycles and is very predictable. When you look at Nature you will see there are relatively predictable cycles everywhere. We see day become night, the changes of the seasons and birth to death of our own bodies. Some changes are so microscopically small we cannot see them and others are so long we are not aware they are taking place. Everything has a season or a cycle. It is up to us to be able recognize it and use it to our advantage.

People ask why did the stock market go up (down) today? These short moves can usually be laid to some recent event. Then there are longer surges and regressions of months or a few years. We have bull markets and bear markets that seem to have historical cycles that last decades. These latter cycles run for about 16 to 18 years and move similar to the surges of the sea against the Acapulco cliff. A knowledgeable market timer will buy when the water is out (stocks look their worst) and hit the ocean (sell) as the surge is at its highest.

The ability to do this is NOT guess work. It is an understanding that cycles apply equally as well to the stock market as they do to the forces of Nature. Unfortunately, the principles to learn this very simple technique are not taught in college. Most must learn the method in the school of hard knocks. It can be very expensive.

In our recent bull market from 1982 to 2000 we had one of the predictable long cycles. The mindset of the public has become so hardened to the bull concept that they (and almost all brokers) have forgotten that each up surge is followed by a down surge of approximate equal length. This is not very comforting to current owners of stocks and mutual funds, but once they realize it they can do the prudent thing to protect their money - sell. Then they can buy U.S. Treasury bonds and wait for the next bull market to arrive. It is not very exciting to be in cash, but it is much better than seeing your money slowly disappearing before your eyes.

You must learn entry and exit of the stock market just as the divers in Acapulco have learned the correct moment to jump off the cliff.

EzineArticles Expert Author Al Thomas
For more information about this article and/or the author visit http://www.mutualfundmagic.com

For more information, news and articles see:

Structured Products - Structured Products
...test structured productsthat are on the market? Do they compare and contrast, analyse and evaluate the products that will be suitable for their clients? If they take their role seriously they will a...
Visit Structured Products...

Debt Management Help - Debt Management Help
...ggle your finances there just doesn`t seem to be enough coppers in the bank to pay your creditors. You are not on your own. The UK has been spiraling further into debt for a decade and a large numbe...
Visit Debt Management Help...

Debt Solutions - Debt Solutions
...our debts are spiraling out of control. With each passing month you are robbing Peter to pay Paul and the heavy cloud of debt is always hovering above your head. When you sit down to work out your m...
Visit Debt Solutions...

Bad Credit Loans - Bad Credit Loans
...CCjs causing your problems and missed payments weighing heavily on your credit score? Looking for a loan is pointless isn`t it, or that`s how you see it anyway. Just because your finances haven`t bee...
Visit Bad Credit Loans...

The Taxation People - Article01.html
... Taxation People, are a forward thinking online accountancy service that specialise in helping people who might be eligible for a tax refund. They offer a online service, with a simple and easy to fol...
Visit The Taxation People...

Structured Deposits - Structured Deposits
...ncial advisors would take their time to research the latest structured deposits for their clients. What would be the point in consulting an advisor if they failed to compare and contrast the deposits...
Visit Structured Deposits...

The Taxation People - Article03.html
... in the UK, in fact as many as one in three UK taxpayers have paid too much tax! A new `No Win No Fee` tax refund service has just been launched by Greer & Taylor LLP on a dedicated new website The ...
Visit The Taxation People...

Homeowner Loans - Homeowner Loans
...aid the monthly direct debt to the utility firm. You`ll have to sort out funds for your credit cards next week and then there are the catalogue payments to make. It`s the same story each and every m...
Visit Homeowner Loans...


Click For More Detailed Information on:
best young trade store ::my little company online ::easy little company live ::best little company live ::my young trade

Home  |  About Us  |  Contact Us  |  Articles  |  Special Reports  |  Links  |  Site Map

Copyright © 2003-2010. All Rights Reserved.


Valid CSS!