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How to Use Current Stock Market Statistics to Make Best Buying and Selling Investment Decisions

by GBAF mag
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The Current Stock Market Today is a free daily news and economics online covering the U.S.stock market, the economy, taxes, energy, finance, national security and international business. In this newsletter I’m going to talk about why the best stocks to buy are the blue chip stocks. Blue chip companies have been around for at least 20 years and/or have a solid earnings history. A blue chip stock will usually be established within a major energy, pharmaceutical, or banking corporation. A company that offers a high return on equity with strong financials and stability should be one of your top picks.

This may sound like doom and gloom, but it’s not. It is possible for you to make money in the current stock market during a bull market. It’s also not impossible to lose money during a bull market. Don’t make the mistake of assuming that every time there is a recession and the stock prices tumbles, it will automatically turn into a bull market. There are always exceptions. Just look at the tech and energy sector during the last decade as an example.

How did those investments perform? Surprisingly, very well. That’s because they were relatively safe during the good times between recessions. However, they were nearly wiped out during the great financial crisis. Since then, stocks of those sectors have tumbled in price, while the overall stock market has rocketed.

This doesn’t mean you can’t make money during a bull market. It just means you need to do your research and evaluate all of your investing options. Keep in mind that the best time to buy and sell stocks is in the year before the onset of the first wave of high expectations. The first few weeks of any bullish cycle tend to be the most profitable for short-term investors. However, the bull markets don’t last forever, so if you’re looking for a long-term gain, you need to find other investments during the late part of the cycle.

A great way to determine how well the current stock market is doing is to look at its performance relative to its peers. For instance, the Dow Jones average is usually pretty close to that of the current stock market averages. Also, the world market cap index is probably a little bit higher than the Dow Jones. If you want to get a better idea about which markets are doing well and which are failing, you should definitely study up on some global market cap and bond index comparisons. These are available easily online and are very useful for learning about the trends in particular markets.

Another great way to use current stock market statistics to determine whether or not investing in the U.S. is a smart move is to simply track how well investments in emerging countries have done over time. For example, India has consistently outperformed the U.S. and many people are wondering if the recent economic meltdown in the U.S. was a global event that just affected one particular country. If you take a look at emerging country equity holdings, you’ll find that there’s certainly a lot of money to be made in these countries. India is a cheap country to invest in and it’s home to the emerging giant of Indian companies – the Indian market – which is worth an estimated $3 trillion. If you can purchase equities in a nation like India that’s just starting to grow, you stand to make a huge profit.

Of course, while there’s certainly a lot of potential profit in international equity shares, you need to remember that there are also some risks involved. In the early part of the decade, there were a few large international equity companies who took big risks in order to ride the bull market. Some of those companies eventually folded, some went into bankruptcy and others lost a lot of their value.

Don’t be discouraged if you’re thinking about investing in emerging nations during the initial part of this decade because many of those companies wound up being successful and profitable. China, for example, saw a bull market in its domestic stock markets, but managed to use its newfound wealth to become a strong force internationally. If you buy stocks of companies that are doing well in emerging nations during the early part of your decade, you should expect them to do very well during the later years of the decade when the bull market comes back. This is another reason why you need to study U.S. equity investment decisions from years ago carefully – you never know how those companies will perform when the bull market comes back.

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