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The Chinese Stock Market

Filed Under: Glossary by Bill — Comments Off
October 31, 2011
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There are really two Chinese stock market choices.  The first is the Shanghai Stock Exchange and the other is the Shenzhen Stock Exchange.

The Shanghai Stock Exchange (SSE) is the  5th largest stock exchange, however, it is also one of the most restricted.  The structure is in A and B shares.  The majority of stocks are listed in  A shares that trade in the Chinese currency renminbi yuan and can only be traded by Chinese traders.  The B shares (with much fewer choices for the investor) can be traded by anyone.

The listing requirements for the SSE is similar to other large exchanges.  They have a market cap minimum ($30 mil), profitability over the last 3 years, and at least 25% of their company is traded on the open market.

The other Chinese stock market is the Shenzhen stock market.  This is like the NASDAQ equivalent in China.  The exchange is completely electronically managed called the ChiNext.  This companies on this exchange are mainly high-tech start ups that are majority owned by the Chinese government.

My personal opinion is with the increased globalized economy many of the large corporations will begin to be traded on Chinese stock markets which will decrease spreads on these companies and increase trading activity.  This will also lend creditability to many of the Chinese companies that still aren’t trusted by the average investor.

 

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Stock Market Predictions for 2012

Filed Under: Stock Pick of the Day by Bill — Comments Off
October 2, 2011
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These are only my thoughts and opinions.  However, since they are not influenced by any major government, political, or commercial interest they are at least honest.  (I know I’m a bit jaded).  Here are a few of my stock market predictions over a few different time periods.

Stock Market Predictions from now until 2012

The US equity market will continue to be highly volatile between now and the end of 2012.  The US is heading into a recession, but so are much of the 1st world nations.  As bad unemployment and other economic indicators continue to roll out the stock market will continue to fall.  However, money will continue to flow to the US equity markets from other nations as they struggle and their currencies fall.  Interest rates will remain low, and quite possibly go lower so the savers will continue to be hurt.  Nowhere to hide your money.  My best bet is cash and the highest stock dividends in US staples.  (Food, Medical)

US Stock Market Predictions for 2012

The stock market throughout 2012 will remain choppy and overall flat to slightly down.  The government will be unable to accomplish anything as they are way too concerned with their reelection campaigns and with the republicans controlling the house, democrats controlling the senate, and a democratic president no real bills will get passed.  The state of affairs as they are now is the law of the land until after the election.  Since the majority of the country is very unhappy with economic affairs in the United States then market sentiment will continue to be bad.  I intend on keeping tight stop losses, even on my 401k, to prevent large losses, buying in after big market drops, and practicing my day trading skills.  Good traders will make great money.  Bad money managers and gamblers will go broke.

US Stock Market Predictions for after 2012

After the elections the market will improve if either party takes control.   Doing something will seem better than doing nothing.  My personal feelings are if the direction is towards debt reduction then 2012 will remain flat, but will become very strong going forward.  If the direction is towards stimulus then 2012 could be strong, but after that we could begin to see stagflation as the interest on debt due to increased debt with increased market rates will become too large to handle.

US Stock Market Predictions for the Long Term

The US is still the most successful nation and there is no better nation to grow going forward.  The Europeans are trapped in socialism with Portugal, Italy, Greece, and Spain holding them down, the Chinese are trapped by their communism where eventually the billions of poor will revolt, and the commodity rich Africans have no political strength.  The US will succeed and is the best bet for running a small business from, owning any asset class, and long term stock market investments.

 

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Take the Risk and Buy Penny Stocks Online!

Filed Under: Penny Stocks by Bill — Comments Off
September 29, 2011

You can actually make money buying penny stocks. Yes, you do not have to have a large amount of money to get started, because the stocks are only $5 and under per share! There are several ways to make money in penny stocks as well. Don’t be afraid of trying them either, take a risk, and you may see huge profits. Before you go out and start buying up some stocks, you might want to learn a thing or two first.

You always have to take risks in life, if you want to get anywhere that is. Without taking a risk, you will never know. So why not try it and see. Now, don’t put all of your money in one stock, that is a sure fire way to loose it all. Start out with a little bit at a time, and diversify your money in different stocks. Yes, penny stocks are very volatile, but that also means you have a great chance to make some huge profits. However, before you even put your hard earned cash into the stock market, you should practice first.

Practice with fake paper money. Play the stock market simulators until you can consistently make profits. You can find a lot of them that come with your online penny stocks broker. This will take a long time, but keep practicing. And be aware of your emotions, because they will change when the time comes for you to use real money. So resist the urge to use real money for as long as possible, this will help you from loosing all of your money.

To make money with penny stocks you can day trade them or you can look for those gems, or both. A lot of people day trade penny stocks, because it can be difficult to find gems, because penny stocks are usually brand new company and there is no history yet. Plus, when you day trade you can make money today instead of several years down the road. However, you can find some gems in penny stocks, you just have to really research a company, and maybe don’t go after the brand spanking new companies. You might want to try your hand at both, with a lot of work and a little bit of lucky, you may strike it rich!

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The Bonds of My Choice

Filed Under: Bonds by leonardo — Comments Off
September 11, 2011

I am what you would call an adventurer. Yes I am that, and you might even add risk taker and even gambler as proper descriptions for me. That is all because I love to take on challenges that are seemingly impossible to overcome, or at least give little chance to the one who accepts the challenge. The kind of challenge that I am taking on right now could actually cause some genuine concern, because it is all about my financial standing and how it could be better. The risk here is because I am about to foray into the world of investing, stocks, and things like that. Surely, it is not something that’s considered easy because of the overall economic situation. The global financial crisis that hit a few years back is still slightly felt. It is therefore understandable that any move involving finances would be considered as a bit of a risk.

Since I do relish challenges, I still decided to go into investing, especially since I know that the rewards would be great if I am successful in it. Bond funds are particularly popular as of now, so I chose to go right into closed end municipal bond fund. The popularity of it did play a part in my selection, but I also do know that there is a good chance of success. Closed end bond funds possess a versatility that appeals even to those new to investing like me.  Though many are shorting bonds because the investment bonds rates are so low, many believe the values should drop going forward, I believe people are still uncertain about investments and only know to flee to bonds.

Those who are in a high tax bracket could make use of it as it is available in both taxable and non taxable forms. And if everything goes right, the returns would; be pretty good. Once everything works out in my venture into closed end bond funds, I am planning on also investing in
copper ETF in Canada, which is also turning out to be pretty lucrative.

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