About

When it comes to what to look for in an investment there are many questions you can ask.  The possibilities are really endless because if you are investing in stock for companies most people forget the delve deep into the company.  They only look at what it has done, what it’s doing now and where it could go and they usually are only talking about current stock price.  Is that all there is, if that is true then you are simply playing a guessing game and are following nothing but a price chart.  This is a way to invest and it is what we really mostly see.  Investors will break things down a little more into hi risk, moderate risk, and low-risk investments.  They will even put valuations and safety for return, but most are only talking about stock price.  They are talking about buy and hold and in this market that is so risky.  Take 208 for instance.

In 2008 the stock market crashed and most investors who had their 401k’s and life investments lost a majority of their wealth.  If your idea after the crash was to buy again at low prices and hold, well just recently we had another market crash and more wealth was lost.  Most of us were not able to buy back at the bottom of the last crash due to not having cash flow. Now since we purchased when it was on the rise, the market just fell below what we paid for it again.  Now many are out twice in a single lifetime.  So is that the only way to look at an investment is from a price buy and hold valuation? I think not.  Especially, since you want a company that will be successful and must be able to survive market down trends or crashes. In order to invest in companies like this we must be checking to make sure we are actually getting a dividend. 

Indeed, there is no such thing as buy and hold on stock in order to guarantee making money anymore.  The valuation of companies in the United States Stock Market has lead to more financial calamities in the last 12 years than a century.  If we all had elite financial research companies at our side like American FX we would be able to buy and sell at teh correct time netting great proffits.  Alas, most of us don’t and we are buying and holding and hoping another market crash does not occur. So when investing this year check to make sure the dividends are still flowing so at least you can get paid for investing in one way. 

As per the usualy we are not giving financial advice, only talking about the market as we see it.  Please see your local broker, investment firm or attorney for financial advice.