L
Luxy
Guest
Just to share my insights and research from the stock market.
As what we can see now, the stock market is trading horizontally.
The main reason is that people are partially unconfident. But why doesn't the market dips? Becos most companies are still making more money this year but yet people predict it will do lousier very soon. The main cause of the lousy market is due to the credit crisis in america few months back. Normally economy will not be affected immediately, and repercussions only creaked in some time later, meaning later half of this year. We have seen banks closing down, fed pumping in cash and more will come. Even though banks do not totally represent the whole economy but banks are a huge determinant and a market leader when comes to market. When the bank business is good, everything else is good. And vice versa. Now the bank has been affected, the same will slowly come to companies, sectors by sectors. It is extremely hard to trade now even though companies seem to be doing well but yet stock prices kept dipping.
What i suggest is to look for good companies (meaning blue chips), buy this year at cheap prices then sell them ard 2 years later. I have ever used this method to make money. Short term trading is not advisable now as it is risky and extremely unpredictable.
Just my 2 cents worth of advice.
As what we can see now, the stock market is trading horizontally.
The main reason is that people are partially unconfident. But why doesn't the market dips? Becos most companies are still making more money this year but yet people predict it will do lousier very soon. The main cause of the lousy market is due to the credit crisis in america few months back. Normally economy will not be affected immediately, and repercussions only creaked in some time later, meaning later half of this year. We have seen banks closing down, fed pumping in cash and more will come. Even though banks do not totally represent the whole economy but banks are a huge determinant and a market leader when comes to market. When the bank business is good, everything else is good. And vice versa. Now the bank has been affected, the same will slowly come to companies, sectors by sectors. It is extremely hard to trade now even though companies seem to be doing well but yet stock prices kept dipping.
What i suggest is to look for good companies (meaning blue chips), buy this year at cheap prices then sell them ard 2 years later. I have ever used this method to make money. Short term trading is not advisable now as it is risky and extremely unpredictable.
Just my 2 cents worth of advice.
