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Since the turn of the century, gyrations in the financial markets
have brought to light the risk that one is burdened with when
investing in stocks. After hitting an all-time high in early 2000,
the S&P 500 lost over a third of its value in two years. It
recovered the loss only to fall again in 2008, but this time the
crash was even worse. In just seventeen months the S&P 500
plummeted 57% An investment made in 2000 was only worth half its
original value nine years later. One is left wondering, "is there a
way to invest in stocks that will allow me to make money without
keeping me awake at night?" The good news is there is not only one
way but five. Drawing on analysis of fifty years worth of data,
"Five Ways to Beat the Market" presents five methods that will
allow you to make money more quickly than the stock market itself
will grow. These methods have the added bonus of getting you out of
stocks when the market sours, thereby reducing your risk. Each
method is presented with performance data from 1960 through 2009
detailing how much money an investment would have made and how
likely a loss would have been. Step by step instructions are
included, outlining exactly what you need to do to employ these
methods successfully. Ways to boost your performance are also
suggested, once the basic methods are covered. Over the fifty year
test period, average compounded returns of 12% - 13% per year were
recorded while avoiding the huge stock market crashes that have
occurred. The "experts" will tell you that the only way to safely
invest is to buy stock and hold on to them indefinitely. What they
don't tell you is that you'll also need to cross your fingers and
pray nothing bad will happen. Once you've mastered the simple
methods in this book, you'll no longer need to worry. You will know
when to get into the market and when to get out. Not only will you
sleep better at night, but you'll enrich yourself in the process.
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