Stock market went down to rock bottom last October, banks and insurance companies failed, investors lose huge amount of money, and followed by raise of unemployment rate. Government gave out hundreds billions dollar tax payers’ money in the form of bailout just to keep the economy afloat. More than a year later, economy is almost back to positive, from the look of it. However, one must not deny it is getting more risky to get into the market nowadays, consider the stock market has rallied beyond the economy fundamental (In my opinion) when unemployment rate is still high and many companies are still losing money. Any negative news will send the stock market into a major correction. As stock investor, it is important for us to learn what are the major mistakes we could possibly make thus to avoid [...]
Stock market around the globe has been rallying ever since the beginning of the year, with many stocks become overvalued (to some analysts) and ran out of fundamental. Have you ever wondered if this recovery is in for real and permanent? There are many reasons to why the stock market will crash as it nearing end of the year (Between October and December), below are the 6 most major reasons. US being the largest economy in the world, the health of their financial system is vital to the recovery of global economy, thus most of the reasons also originated from [...]
Warren Buffet raised a can of Coke and said that it is easy to understand business of the soft drink, while he was giving a MBA talk at University of Florida. It is a simple business. Not easy, but simple. A business needs to have a moat around it and a wonderful and valuable castle in the center. And a person running the business needs to be honest, hard working and capable. [...]