golf48759

...Youve probably heard me say over and over that 80% of your return on your portfolio comes from the market and the sector. But what the heck does that really mean?

In June 1998, Investors Business Daily summarized two studies on the causes of stock- price movement in two books: The New Science of Investing, by Dr. Robert Hagen and The Latent Statistical Structure of Securities price Changes, by Benjamin king.

Those studies found that 31% of a company's stock-price action was tied to the market as a whole. Industry group action explained 37%, while broad sector action accounted for 12% of the price movement.

Both studies concluded that only 20% of the price action in a stock was determined by company fundamentals!

Unfortunately, most people were taught backwards. Most think gains and losses are only determined by picking the stock with the right fundamentals! Fundamentals are things like P/E ratio, good management, growth rates, new products, market share, etc. I'd venture a guess and say that most people spend 80% of their time (and sometimes 100% of their time!) trying to find the stock with the best set of fundamentals.

Yikes!

So what happens when a company "with great fundamentals" happens to be in a sector thats on defense? Or what if the whole market is on defense? The company could see their stock price get slammed (yes, even with great fundamentals!).

Say you bought at a stock a few months ago at $40. today it is $20. The company may still be growing like crazy, but the market or the sector dragged it down. If the story didnt change, then didn't the fundamentals just get even better? It has to be a better value at this price, right? If you invest by using only the fundamentals, you lose.

Again, most of the returns you're going to get will depend on whether the market (and the sector the stock belongs to) is on offense or defense.

Look, everyone knows that if you're swimming with the current, it's an easier ride. There are times when the market is on offense (and you're moving with the current). Hey, it IS possible to make money when the current is against you. But the odds are stacked against you! So, try to swim with the current...swimming against the curr...more

nfl Football History. A Brief Overview

...ue would be called the american Professional Football Association.

From the wooden, dusty arenas of the midwest including Hammond, Indiana, Akron, ohio, and Rock Island, Illinois to the Duluth Eskimos in 1926 to Super Bowl 111 where Joe namath and the...more

Mike Holmgren owes Bill Cowher and nfl Fans an Apology

...le, in which he insinuated that the referee's were responsible for their loss to the World champion Pittsburgh Steelers. I sincerely hope they levy the largest fine possible on his plump "wallet". Because the statement is not true. The Seattle Seahawks had just as much chance to win that game as did the Pittsburgh Steelers, but it was a battle of coaching and Holmgren was definitely out coached by Cowher. In the waning minutes of both halves of the game, Holmgren was managing the clock like it was a pre-season contest, not the Super Bowl. Constant mistakes which ground away the clock and his teams chance to win. His kicker missed field goals, field goals that super bowl champ's MUST make, just ask the New England Patriots. His best receiver dropped nearly every pass thrown his way. His MVP of the league running back never saw the inside of the end zone. Holmgren started the game passing, yet when crunch time rolled around and the clock was going away, he thought it was a good time to start running the ball for 3 and 4 yard gains. Yet Holmgren takes the low road and calls the ref's out and points his finger of blame in their faces.

On the other side of the field Coach Cowher was planning his work and working his plan, devising plays that totally caught the Seahawks off guard, including the Rothlisbe...more

Star Footballers Eye Start Properties

...ke Cheshire or Surrey.

Country Life, a rural set magazine, annually analyses prime country homes that are sold for more than 2m. But the point to notice is that 40% of such properties are bought by entrepreneurs, 20% by people employed in the service sector and 20% to professional footballers.

The top end of the Cheshire property m...more

posted by 64701  # 6:49 PM