Surfing the Waves of Wall Street.
by Natalie Pace.
As I write, on March 28, 2012, the Dow Jones Industrial Average is down over 119 points. Not much reason to worry, however, because this is just yet another wave in the ocean of our global economy. Tomorrow the Bureau of Economic Analysis will release their third estimate of GDP growth in the 4th quarter of 2011. The final report should come in near 2nd estimates of 3%, and, when that occurs, headlines will boast of the recovery and the markets will rise again.
Today's tsunami of worry over the "tepid" durable goods report will become a swell of optimism that the worst is behind us tomorrow, not because that is the complete story, but rather because headlines are full of hyperbole. Really, really bad or very, very good news attracts more eyeballs than a sober analysis. However, knowing how to surf the waves of Wall Street will bring you a lot more joy than worrying about every headline that you come across, so do keep reading!
It is not just headlines that are fueling the massive waves on Wall Street. A few weeks ago, Liz Ann Sonders highlighted how high-frequency trading (computerized trading involving multiple large transactions at supersonic speed,) now accounts for 50-75% of the trading volume on Wall Street. HFT is adding power, height and speed to the waves generated by headlines.
And that might be enough to make you think the waves are just too dangerous, or the waters are too shark-infested, and you're best to stay on shore where it's safe. And that would be a costly mistake.
While we cannot ignore that there are downturns and recessions, the overriding truth is that Wall Street is made of lots of companies -- many of them make the products you most love. In fact, the biggest gains on April 28, 2012 came to a small organic, natural food company called Annie's Inc (symbol: BNNY). And, just like there are many ways to enjoy the ocean -- from wading, to body surfing to tow-in pipelines -- it's really quite easy to protect yourself from the big waves, while enjoying the wind at your back feeling of compounding gains.
You know how the credit card companies compound your debt? Imagine if you were using the power of compounding to beautify your bottom line and increase your assets! Here is a 10-step plan to do just that.
And here are a few more details...
Read more about these strategies in my book You Vs. Wall Street. Design and implement a plan that will work for the rest of your life at my July 6-8, 2012 Living the Rich Life Retreat. Call 310-430-2397 now to learn more. Only a few seats remain available.
About Natalie Pace:
Please note: NataliePace.com does not act or operate like a broker. We report on financial news, and are one of the most trusted independently owned and operated financial news corporations in North America. This article is intended to educate and inform individual investors, and, thus, to give investors a competitive edge in their personal decision-making. The publicly traded companies mentioned in this article are not intended to be buy or sell recommendations.
ALWAYS do your research and consult an experienced, reputable financial professional before buying or selling any security, and consider your long-term goals and strategies. Investors should NOT be all in on any asset class or individual stocks. Your retirement plan should reflect a long, safe strategy, which has been designed with the assistance of a financial professional who is familiar with your goals, risk tolerance, tax needs and more. The "trading" portion of your portfolio should be a very small part of your investment strategy, and the amount of money you invest into individual companies should never be greater than your experience, wisdom, knowledge and patience.
Information has been obtained from sources believed to be reliable however NataliePace.com does not warrant its completeness or accuracy. Opinions constitute our judgment as of the date of this publication and are subject to change without notice. This material is not intended as an offer or solicitation for the purchase or sale of any financial instrument. Securities, financial instruments or strategies mentioned herein may not be suitable for all investors.