If you had inside knowledge of an investment that you thought would be worth more six months from now, why would you be selling a large chunk of your stake in it this week?
John Shinal of MarketWatch, commenting on the fact that Facebook insiders are selling a large portion of their shares.
Source: soyeahduh
I’ve tried several money management programs, and Mint.com keeps coming out on top. One of the best features is the fact that it’s completely optimized for the iPad. Give it a test drive, and instantly become more aware of your spending.
Market Timing
For some reason, many people think that they can outsmart the market. Studies have shown time and time again that it never works out over the long run.
The reason? It’s because you have to be right, not once, but twice. You have to guess correctly when to buy a stock, and you also have to guess correctly when to sell it. Get one right and the other wrong, and you’ve still lost.
If you still aren’t convinced, check out this post I shared awhile back about high-frequency trading. Makes your Etrade set up look like a joke, doesn’t it?
Dow Jones industrial average closes above 13,000 for first time since financial crisis
The Dow Jones industrial average closed above the psychologically important 13,000 mark today for the first time since the financial crisis. The blue-chip index has climbed 1,000 points in just two months to hit the milestone for the first time since May 2008.
Did you sell everything at the bottom four years ago, or were you smart enough to see an opportunity to buy more? Remember, the name of the game is to buy low and sell high.
Source: Los Angeles Times
cnbc:
Size Matters: Could Apple Determine Market’s Fate?
One out of five hedge funds count Apple among their ten largest holdings, according to a Goldman Sachs survey of the industry.
Photo: Flickr: ping ping
I don’t know about you guys, but this makes me nervous…
Source: cnbc.com
Oddly enough, markets around the world have a slightly higher return on sunny days.
Source: NPR
Putting in a market order the day a stock opens can be risky. In fact, many retail investors were burned during the dotcom era for moving too fast on IPO stocks that never again exceeded their order price. Placing a limit order or stop market order can help alleviate some of the risk, but it won’t guarantee a buyer a piece of the action.
NASDAQ on Tumblr: NASDAQ: Celebrating Innovation Every Day
You may think of NASDAQ as a stock exchange — and you’d be partly right. In 1971, NASDAQ invented electronic trading and the modern IPO, and we’ve been supporting and celebrating innovation ever since. But 40 years later, our technology powers 1 of every 10 transactions around the world on 70…
Yeah, you know I’m following this!
Source: nasdaq
How cognitive illusions blind us to reason | Science | The Observer
Why do investors, both amateur and professional, stubbornly believe that they can do better than the market, contrary to an economic theory that most of them accept, and contrary to what they could learn from a dispassionate evaluation of their personal experience? The most potent psychological cause of the illusion is certainly that the people who pick stocks are exercising high-level skills. They consult economic data and forecasts, they examine income statements and balance sheets, they evaluate the quality of top management, and they assess the competition. All this is serious work that requires extensive training. Unfortunately, skill in evaluating the business prospects of a firm is not sufficient for successful stock trading, where the key question is whether the information about the firm is already incorporated in the price of its stock. Traders apparently lack the skill to answer this crucial question, but they appear to be ignorant of their ignorance.
This is fantastic.
(via emergentfutures)
Source: futuramb
Sit on the sidelines, or seize the day?
A stormy stock market doesn’t have everyone singing the blues. Some wealthy investors see the silver lining in the form of a buying opportunity.
While the Dow and the S&P are down, many analysts say we’re in for a rally during the second half of the year. Unlike the drop in 2008, when banks were lending beyond their means and people had too much debt, the characteristics of this downturn are different.
But not all agree that a move like this isn’t without risk. Brent Fykes, senior investment partner at GenSpring, notes, “We are skeptical of analysts’ estimates of forward earning, especially if growth in developed countries continues to slow.”
Source: bankrate.com
