Bulls To Bears: How High Is High

How High Is High? Can The Bulls Charge On?

 

In doing  our due diligence for our members  we constantly explore  websites  that allow average traders to make stock predictions. Many of them try and make their own stock predictions tend to do so using technical trading tools. They prognosticate on the direction of certain equities based on triangles, trend lines, moving averages and more. What I am astounded by is how each one of them can have a different opinion from one to the next. One thinks the stock is going to tank because it looks like a descending triangle. Another thinks it is signaling a breakout to form a new high.

The interesting thing though, is when it comes to the general market. They all seem to think the Dow and other averages are too high and “done”. It seems that they all look at the general market the same way.

They analyze it like a single equity which has climbed too high based on its current earnings and value. In general, they are wrong as witnessed by the continuing new highs experienced in the market. The question is, why is this the case?

The stock market always has the potential to continue to breakout. Stock prices may go up more, as people continue to earn hearty returns. More loose money comes to the market, and prices go up  further still, attracting even more money. Rumors about the longest-running bull market in history swirl and more investors come into the market. After all how can you beat 5% GDP?

 

There are many reasons for this boom, but the main reason we believe involves sector rotation. If you look at the current investment situation, there is really no place else for the money to flow. Bonds and debt instruments are still not paying enough to be worth putting your money there. Commodities present too much risk. Real Estate once again shot up to unrealistic multiples and investors are left scratching their heads for alternatives to stocks. Currently there are no good replacements. So in their quest for diversity they seek out other areas of the market that have not done as well. They rotate money from one sector to another. But the money still stays in the stock market.

 

You see this reflect clearly in the Dow which has natural diversity built into it. Some weeks the Pharmaceuticals like Merck or Pfizer or Johnson & Johnson are running. The next week they are flat and the technology stocks like Apple, Cisco and Microsoft are running. While each sector runs, the other sectors don’t seem to sell off. This continues to drive the average forward - week after week. 

 

Business is looking better than ever with business enthusiasm at record levels. The Market continues to make new all time highs. President Trump’s focus is on long-term economic fundamentals, which has remained exceptionally strong, with strengthening U.S. economic growth, historically low unemployment, and increased wages for the average American worker. The recent tax cuts and regulatory reforms continue to strengthen the U.S. economy and continue to increase prosperity for the American people.

 

Companies have enormous profit margins right now and are they are using their excess cash to buy back its shares. This, of course, reduces shares outstanding. When companies with Billions in cash like Amazon buy back their shares, this reduces the need for the big mutual funds, etc.

 

For now Stocks continue to soar without taking a breather for a correction despite all the craziness and volatility going on in Washington, continued tension with North Korea and worries about trade Tariffs. How much longer can the market hold its nose up high and pretend that the world is a stable place? We know how hard it is for our society to loosen its grip on the concept of Ever More and to contemplate the idea of Enough. But we recommend trying it. 

 

The stock market just won’t go down, despite geopolitical concerns, over stretched valuations and an unpredictable president. Understanding why the Market keep rising is one way to judge how long the rally is going to last and what will happen next.

 

Will this upward spiral end? Of course it will! But it may take a lot longer than people think. President Trumps economic stimulus has a strong focus on manufacturing. This has not been a focus for a long time. The Dow industrials are geared to be able to take maximum advantage of this. The companies that make up the average could see a long period of solid earnings growth. How does this affect the average investor? Well as we all know, in the stock market, all ships ride high tides. If the Dow keeps going up, expect the rest of the market to follow suit. 

 

In conclusion: Don’t listen to the pundits and naysayers who say the market is overvalued and miss out on major increases in your portfolio because people say the market is “too high”. We firmly believe the greatest risk to the average investor at this time is being underinvested.

Rather than worry about whether now is the best time to buy, just keep buying. Market high or market low, just keep buying. You should think of buying investments like you buy your food. Make it a habit to invest your money like you make it a habit to pay your bills. As long as you can buy, you should continue purchasing equities. Just do it! Thank us later...

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Till next time... As always, Happy Trading!

Bulls To Bears: Time To Trade A Pot of Gold Paper

Gold is a commodity subject to the variation of supply and demand. The value of gold changes fast, and gold's price moves can be very volatile. Gold stocks also have a tendency of performing terrible when the stock market is doing well, as they are today.

Consistently, throughout the years, Gold has outperformed a variety of investments. However, surprisingly there are still millions of Americans who don’t own any gold or gold stocks. A large number of people still remain on the sidelines simply because they are confused by the vast array of gold investment options. This puzzlement is the subject that we are going to examine today in this blog.

 

It has been characterized by the methods and principles of science that it is easier for individuals to make decisions when there are only 2 or 3 possible choices. Otherwise, the assignment of assessing every conceivable decision turns out to be to daunting of a task for people,  to the point that it scares them  into inaction.

The gold market has recently seen the innovation of a large number of new products, but at the day’s end there are really only two choices  for buying gold - paper gold or physical gold.

Paper gold investments, also known as gold derivatives, are investment vehicles that have something to do with gold, but do not include the physical delivery of it to the purchaser. Examples include gold mining stocks, gold ETF investments and gold pooled accounts. The calling cards of these ventures is that they are frequently expected to closely track the gold spot price, but rarely do, and at the end of the day you still require a piece of paper to prove possession of it.

Physical gold investments are exactly what they sound like: these are purchases which include taking possession of physical gold. An Investor can purchase gold bullion bars, gold coins or certified coin investments and immediately become a part of the physical gold investment market. The bullion is always tracked by the spot price, while certified coins regularly track the spot price and in many cases beat the bullion over time.

Gold speculators who are in it looking to make a quick buck may do better with paper gold investments, but safety minded investors will usually get what they are looking for by purchasing physical gold.  It’s a simple question, if you are one of the many people as of yet who do not own any gold investments, you have two options when looking to buy Gold. It’s merely an easy question of what is most important to you, profit or safety.

Whether it is the tensions in the Middle East, Africa or elsewhere, it is becoming increasingly obvious that political and economic uncertainty is another reality of today’s economic environment. Consequently, speculators commonly take a gander at gold as a place of refuge amid times of political and monetary vulnerability. Why is this? Well, history is full of collapsing empires, political coups, and the collapse of currencies. During such times, investors who held gold were able to successfully protect their wealth and, in some cases, even use the commodities to escape the turmoil. Thus, there are situations that indicate some sort of worldwide financial vulnerability, speculators will frequently run to purchase gold as a place of refuge.

The fact that gold is no longer backed by the U.S. dollar (or any worldwide currency), why is Gold still important to invest in today? The more straightforward answer is that while gold is no longer in the forefront of the global economy, it is still extremely critical to own. To further illustrate this point, there is no other compelling reason to look any further than the accounting reports of national banks and other money related institutions. Presently, these institutions are in charge of holding around one-fifth of the world's supply of above the ground gold. Further still, many national banks have been adding to their ever present gold stockpiles, telling tales of their concerns about the long haul of the worldwide economy.

The idea that gold preserves wealth is even more important in an economic environment where investors are faced with a declining U.S. dollar and rising inflation. Historically speaking, gold has served as a hedge against both of these situations. With rising inflation, gold typically advances. When investors realize that their money is losing value, they will start positioning their investments into hard asset that haves traditionally maintained its value. The 1970s presented a prime example of rising gold prices in the midst of rising inflation.

The reason gold benefits from the declining U.S. dollar, is because gold is priced in U.S. dollars on a global scale. There are two explanations behind this relationship.  First, speculators who are thinking of purchasing gold (i.e., national banks) must tender  it in U.S. dollars to make the exchange. This eventually drives the U.S. dollar lower as worldwide financial banks try to differentiate out of the dollar. The second reason is the way that a struggling dollar makes gold less expensive for speculators who hold different forms. These outcomes are a more of a noteworthy request from institutions that hold gold forms in retrospect to the U.S. dollar.

When you pair assets that move differently from each other, you tend to create a more diversified portfolio. This is why mixing bonds with stocks is the cornerstone of so many portfolios. Bonds have a negative correlation with stocks, meaning they tend to go up when stocks are going down, and vice versa. Here's the interesting thing: Gold's correlation with bonds over the past decade or so is roughly 0.25, still very low. So gold doesn't track along with stocks, and it doesn't track along with bonds, either. Adding a small amount of gold to a stock and bond portfolio, probably no more than 10%, can help increase diversification and the ultimate safety of your entire portfolio.

Should you be investing in Gold at this time? Being the contrarians that we are and looking at the current prices of gold stocks across the board. Some gold stocks appear to be looming buys. In the case of gold, it is a risky asset class and it would be unwise to invest all your money in it. However, because gold is viewed as a source of wealth, you shouldn't dismiss it as an investment option.

Investors tend to gravitate into gold when they are scared, which boosts its value when assets such as stocks start falling. It just needs to be paired with a more broadly diversified portfolio so you can benefit from the non-correlated nature of gold's performance. And, yes, that will require re-balancing your portfolio every so often, when allocations get materially out of line.

We at BullsToBears.com aren't in the business of buying physical gold, but we can point you in the direction of some gold stocks that appear attractive and might be worth dabbling in at this time and place. As always, were here to help you become a better trader by pointing you in the direction of a some great trades ahead.

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Till Next time... Happy Trading! 

Bulls To Bears: Invest - Ride or Die

Investing is a must and a vital part of good money management, because it provides you with both immediate and future economic security. When done correctly you wind up with a lot more money in the bank and also end up with another income stream.

 

Investing your money wisely in stocks is one of few ways anyone can create both viable wealth and passive income. Investing smart ensures present and future financial security over the long term. The money generated from your investment holdings should provide you with both financial security and income.

Actually, anything that generates a return is an “investment”. This means that even your savings account generating that 1% interest is an “investment”. However, when most people talk about investing, they're referring to much higher return investments like a funds, bonds and stocks.

 

One of the ways investments like stocks and bonds provide income is by way of a dividend. A dividend is an amount or a percent paid to a shareholders simply for holding their investment. These investments usually pay a monthly, quarterly, or annual payments, so you get passive income that ultimately could replace your pay check.

 

So you want to start investing with stocks, but the problem is, you have no idea what you’re doing? That’s okay! Again, we’re here to help.  In order to start investing, you’ll need to open what’s called a brokerage account. This is different than a bank account, though large banks might also offer brokerage accounts. However, you’re likely best off choosing a discount online brokerage. If you’re already trying to manage a budget and pay down debt, you might wonder why you have to add another financial task to your to-do list. But this one might be the most important of all.

 

Discount and Online brokerages make buying and selling stocks more accessible than ever. There are many online resources to build and manage your trading portfolio, whether you are investing in the USA or Abroad. Most brokerage accounts are inexpensive to begin to trade, with most that require only about  $1,000 to open and start investing.

 

Most millennial's today are afraid of investing in the stock market and I can’t emphasize enough how much of an opportunity there is "right now" to kick start a lifetime of wealth creation! It really doesn’t even matter if you make small contributions, because time is on your side. Once you start and open up that brokerage account, even as little as a few hundred per month can help your portfolio grow till you have something substantial.

 

Today more than ever money plays an important role in our society. Creating wealth is crucial for your future. Many people have money, but the majority of people do not have enough of it. Making smart investments early on in life will pay off big time. Regardless of your current age, it is never too late to start to invest your money and to be able to fund your lifestyle and plan for some rough patches and hardships that life will throw at you. There are no guarantees in the market whether you will profit or not and there is no way to determine today what will happen tomorrow. A number of unforeseen probabilities could eliminate your ability to earn money by traditional means like accidents or poor health. 

I hope you have heard the saying that "a penny saved is a penny earned." which is related to saving money? Saving your money will allow you to store it away and use for a later purpose. Many couples save money to pay for educational expenses for their children or for a vacation. You can even save for new automobiles, sports events  or to make improvements or repairs on your house. Saving for any of one of these reasons can help you achieve your desired outcome. However, the difference is that you will be saving money to spend it. This "saved money" will not be a part of growing your wealth.

 

Investing money that you save allows your money to grow to larger sums. Investing your money into treasuries, stocks, certificates of deposits and savings accounts builds wealth slowly over the  time. Quarterly or annual interest payments you receive from your investments are added to your original sum and helps to grow your money.

In the end, it is not so important what you choose to invest in, as long as you "DO" in fact invest your money. It is important for us to note that investing in Stocks have offered the most potential for growth. US stocks have consistently earned more than investment-grade bonds and real estate over the long term, despite all the ups and downs of the stock market. That's why investing in stocks, mutual funds or ETFs, is so essential when saving for your retirement and other far off goals.

So, no matter your age your at, and how far away retirement is, you want to enjoy your golden years and do the things you want without having to worry about the money.  So, to help you achieve that, the historical odds favor a diversified mix of investments with a significant exposure to stocks. So, sooner than later you must get used to riding the ups and downs of the market. For those investing for the long term and saving regularly, a stock market downturn can even help boost significant savings  because the same amount of money can buy you more shares of stocks at cheaper prices. 

Still unsure of what to do? Let us explore a range of investing options that Bulls To Bears offers. Our team of professionals does the hard work on what stocks you should be buying for yourself. Our program teaches people how to build a robust diversified investment portfolio, even if they are starting from scratch. Again, if you’re brand new to investing and want to do it right, our stock trading program is the only guide you need.  If you don't invest in your future you are already playing the losers game. So, enjoy your life and Invest wisely.

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The time is now to start making smart investments! Until next time... Happy Trading!!!

Bulls To Bears: Behavioral Coaching and Trading

I saw another interesting video I'd like to share with you. This one was from Investors Business Daily's web-site, it features an interview with Steve Wendel. Dr. Wendel is a behavioral scientist who studies financial behavior to help individuals manage their money more effectively. He is Head of Behavioral Science at Morningstar, where he leads a team of behavioral scientists and practitioners who conduct original research on savings and investment behaviors. Stephen has authored two books on applied behavioral science.

In this video Dr. Wendel talks about behavioral finances, coaching and psychological obstacles. People needed to be coached because they don’t perform well at current tasks. Coaching is one of those things that a lot of people aren't sure about. Although most of the world's most successful people, from athletes to business people, have coaches to accelerate their success. If you already know roughly what you need to do to achieve your goals, but you're good for making excuses and putting it off, a coach will put an end to that procrastination. When you're only answerable to yourself, it's too easy to say "I'll do it later or wait till tomorrow"  and we all know that tomorrow never comes! A coach is there to be your conscience, providing a supportive nudge in the right direction.

Working with a mentor/coach can help push you to the next level.  A good mentor knows where your next step should be to continue on your road to success. When you’re a new trader, it can be difficult to know what the next step is. A good mentor will guide you through the processes of learning and growing. Coaching is individualistic and it works best when it is tailored for the a persons specific needs. We may share computer screens shots and work on the trades together or we could be exchanging emails or texts.

 

Having a great coach and mentor can make all the difference. We've already tried and failed; we’ve made mistakes and have learned from them. Working with a mentor can be expensive in the short run, but in the long run, you may end up shortening your learning curve and get you even better success that your looking for. 

 

Developmental coaching is an individual development program tailored to help boost strengths, professional goals and objectives. Through coaching, you can enhance your effectiveness as well as support purposeful actions towards your goals and desires. It is your opportunity to stand back and gain new perspectives on your challenges and opportunities. Dr. Wendel's studies help people achieve results in areas of their life that they have previously struggled with, such as exercising more and building up savings.

 

So, should you invest in the stock market today? The stock market is at an all time high and most stocks appear expensive. This is a conundrum to both new and experienced investors alike. Nobody wants to buy stock if it’s going to crash 20% in 6 months, right? On the other hand, the stock market might continue to go up for the next few years. You don’t want to miss out on that gain. If you search around on the internet, you’ll see articles as far back as 2009 telling investors to pull out of the stock market. The S&P 500 index has more than doubled from that point in time and we’d all be a lot poorer if we followed that advice.

There is an invisible force that determines how we see ourselves and the world. So, If you are a young investor and just starting out, then invest as much as you can. At that point, your saving rate is much more important than the rate of return. Young investors also have time on their side. Even if the stock market crashes, you will have plenty of time to recover. In fact, young investors should hope for a big crash. That’s the time to buy and it benefits them the most. Just keep investing if you’re in your 20s,30s and 40's.

Like Dr. Wendel, Bulls To Bears teaches different ways to help individuals solve some potentially big problems. When people change their behavior and daily routines, whether it’s exercising more taking control of their finances or organizing their emails. Life becomes better. Development Training uses a variety of tested and proven methods to support you in your journey.  When you engage in developmental coaching with us, we will introducing you to the exciting world of the stock market, taking you from the very beginning "What is a stock?" to teaching you about different investing strategies, like Fundamental and Technical analysis.

For the past couple of decades, Stocks and real estate are the two investments, which have constantly beat all other forms of investments. Whether it is bonds or commodities like gold, silver, oil etc.. The stock market has been able to outperform all these investments with the best returns on investments. Hence, with the tremendous growth potential in the stock market, it is always advisable to be investing in stocks.

Check out the full video interview with Dr. Wendel at the link here: VIEW DR. STEVE WENDEL VIDEO 

Bulls To Bears is dedicated to empowering our followers by encouraging their advancement by providing a system of training and development that is ongoing and structured to purpose. Our stock trading objective is to prepare and empower individuals just like you to participate in the market safely and meaningfully. Further, we believe that skills we help develop is a critical contributor to the success of our followers.

Remember, you can learn more information about our stock trading strategies on our website at BullsToBears.com. Also there you'll find a 14 day FREE trial so you can take advantage of some ready to advance trades.

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