COMMON SENSE

FINANCIAL :: SECRETS
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Buy and Hold Myth Part 5

October 03, 2009 By: Doctrader Category: Free Stock Charts, Long term savings, Pension 401k, Stock Trading

The Buy and Hold Myth, part 5, looking at next week, the market will have  price reminisces of last years stock market.  Now, if you thought the market reached it’s low last year, you still suffered losses through the low in March 2009.  How would you like to learn how to avoid these unnecessary market drops, you will have to learn technical analysis to time the market during these short term cycles.  My blog post in Jan, 2006, I explain how the market media matrix manipulates into thinking there is always and eternal bull market.  I reviewed Jane Bryant Quinn article about the theory of “buy and hold” for long term investors.  I think you will find it interesting to know that if you missed the best 90 days of market gains, you would have a paltry$2.70 for every dollar invested.  If you followed the “buy and hold” theory, you would have $75 for every dollar invested.  Now that sounds like a good case for buy and hold, right?

However, if you would have missed the worst 90 days of the market, your gains would have been $1694!   I guess Wall Street’s “market media matrix” does want you to know about that!

  • A.  buy, hold, hope for 42 years for 90 good days in the market, results $75.
  • B.  time the market yourself and miss the best 90 performing days, results $2.70
  • C.  use Doctrader’s  “red signal line” to avoid the worst performing 90 days of the market, results $1694.

Raise your hand if you can see which choice you want!

Introducing the “red signal line” to determine if the market are in a long term bull market or a long term bear market.

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9 Common Financial Myths:: Uncommon Financial Secrets

September 29, 2009 By: Doctrader Category: Long term savings, Pension 401k, Uncategorized

The 9 common financial myths have been propagated by the market media matrix to maintain the status quo on your financial future.   Last year I issued a warning to long term investors, particularly those with 401k plans and other long term investments.  Over the next 90 days, I will be posting videos to help you unravel these myths about investing, insurance, and the financial markets.  In my opinion, the next 90 days will determine your family’s financial future.

These 9 myths are:

  • Long Term Buy and Hold Myth
  • Diversify your investments
  • Professional Money management
  • Researching / Homework stocks
  • Market  Timing
  • Global Economy
  • Mergers Myth
  • Stock Splits

The first financial myth should be addressed over the next week when you receive your end of quarter reports.   The biggest financial myth is the theory of “buy and hold” for long term.  In today’s age of instant financial info, the myth is busted!  I will show you historical facts that dispel the “buy and hold’ for the long term, is nothing more than one of the best kept financial insider secrets over the last 30 years!

The last 30 years, has seen a significant rise in what the financial insiders call “dumb money” in the stock market.  The insider definition of “dumb money” is the money that is pumped into the stock market by 50% of the population through their 401k’s and 403b plans.

The employers have changed their retirement benefits from a “defined benefit” to a “defined contribution” plans.   A defined benefit plan places your retirement completely under the control of your company. Under a defined benefit plan, your employer specify what will be your retirement amount based on seniority and years of service.  Since the company is responsible, they have to pay for these benefit out of the company’s profits.  Guess what?  The companies that still have defined benefit programs are struggling to fund the defined benefit plans, because they have to contribute “x” number of dollars now, for future retirees.  Most state, Federal, and highly unionized companies have this type of plan.  Yet, most of these defined benefit plans DO NOT HAVE ENOUGH FUNDS TO COVER FUTURE  RETIREES!

A defined contribution plan allows the employee determine how much money to contribute into a his own retirement account.   If the employee doesn’t contribute anything to his own plan, he will have nothing at retirement.  The company saves money by not using current company’s profits to fund future retirees accounts.   More on types of plans later, but for now, let’s just say that everyone is an  investor, long term or short term by default!

If you are responsible for your own retirement plan, how much time have spent on reviewing your plan?  Is it only the 30 minutes per year when deciding your choices of investments?   Do you find these choices confusing?    Well, that is the purpose of the website to provide you with some common sense answers of the  financial services industry.

Let’s start with the a 6 part video series dispelling the buy and hold long term myth.

Part 1, Myths Buy and Hold Part 1

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Manage Your Own Money – 401k Mutual Funds

August 03, 2009 By: Doctrader Category: Financial Info

This video shows how to manage mutual funds in a 401k plan!

Duration : 0:4:55

 

 

 

(more…)

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Profits, Politics, and Protection

April 09, 2006 By: Doctrader Category: Financial Info, Long term savings, Pension 401k

Profits, Politics, and Protection

By Doctrader.com

Starting on Monday, Americans will find out how much illegal immigration will cost businesses in profits, who will be held politically accountable, and how much it will cost for real border protection.
The Market Media Matrix dictates that all activities revolve around producing a profit. The “Market” is all forms of businesses and profits. The “Media” dictates how you should “think and feel” about businesses and events. The “Matrix” is created out of the mass consciousness of people who are not free, logical thinkers.” The Market-Media has created the “Matrix Reality”. When I talk to people about the high rates of taxes they just shrug their shoulders and say, “what can we do about it?” They are living their lives out in quiet desperation not realizing that they have the power to hold the politicians feet to the fire and change the “Matrix.” Due to political correctness, the false Market Media Matrix reality of “Generation X” has increased the children’s confidence and self assurances without any evidence of competency with the rest of the industrial nations.

Profits:
A profit at any cost is the American business motto, right? You can only judge a tree by the fruits it bears. There are many examples and antidotal evidence offered by the liberal news media about the benefits of illegal immigrants who are doing jobs that no one else would do. What all these stories fail to mention is that most illegal immigrants are making much more than minimum wages. The average person still believes that illegal immigrants are picking strawberries and cabbages for less than minimum wages. Illegal immigrants are being used for high paying skilled jobs, such as carpentry and masonry, landscaping, and un-skilled factory work. Which according to an immigrant advocate are averaging $15 per hour! These are the jobs everyone would want not just an illegal immigrant. In all business the largest cost factor is labor. So, given the choice of hiring an American or an illegal immigrant the businesses will hire those who will work for less money. Choosing the lower labor cost has depressed all American wage earners and increased corporation’s profits. Since it is not the businesses’ job to investigate an employee’s legal citizen status businesses can in spirit of the law and the letter of the law hire just about anyone with proper paperwork. This leads to greasing the political palms to keep the charade up of guest workers, undocumented workers and a whole host of politically correct names.

Politics:
Years ago, back in the 1980’s when I was in college I had to produce papers that I was an American citizen. Being a fan of the World War II movies I can hear in my mind the Gestapo saying, “Papers! Papers please. Show us your papers!”. When in the 1980’s the requirement of verifying citizenship was increased from a mere social security card or green card I was not a fan. I could not figure out why I had to show papers which could easily be stolen, copied, or forged and sold for a profit to illegal aliens. It would have been much simpler for the illegal immigrants to produce a “green card” allowing them to work here. The politics of producing profits was conditioning us, the law abiding American, to carry personal identification papers. The Pavlov Conditioning effects of the Market Medial Matrix created political power and profits to the politicians who supported the law.

Flash forward twenty (20) years and we have an invading army within our borders destroying our language and culture.

After 9/11 the first act of congress was to nationalize airline security by creating another political agency to “protect the American people” from hijacking. Meanwhile, the borders were left largely unguarded! The first step that should have been taken was to close the borders and not leave them wide open. This demonstrates the political incompetence of our politicians, both Democrat and Republican. Or, was it a calculated risk to gain the fast growing minority’s votes at the expense of the complacent tax burdened American voters?

The politicians never act until there is a crisis situation. They “come to the rescue” by enacting “knee-jerk public opinion polls” to make their constituents feel better Ben Franklin said, “They that can give up essential liberty to purchase a little temporary safety deserve neither liberty nor safety.” We have been fooled again with the help of the Market Media Matrix. The immigration laws have not been enforced because of the large profit potential by employing illegal immigrants without the protection of the Labor Relation Laws. Liberal politicians would like for you to believe that every illegal immigrant is doing a job that no American would like to do. Never mind they are placing illegal immigrants in potentially abusive situations. Not only are the politicians failing to protect the immigrants they are failing to protect Americans by allowing open borders.

Let’s look at some simple numbers for a reality check.

If there are 15 million illegal immigrants within our country working hard and paying taxes “are we to believe that there are not deviants amount them”? “The Market Media Matrix dictates that all poor people are hard-working and honest“. Unfortunately, the Market Media Matrix reality bubble bursts with FBI statistics.

If we take the normal distribution of deviate behavior of the US population we know that at least 1% will have criminal tendencies ranging from child molesters to murders. If 99% of the illegal immigrants are law abiding and 1% are criminals. How much are these criminals costing us? The 1% represents 150,000 potential criminals who have to be caught, prosecuted, and incarcerated. The cost to the American tax payers include educating illegal immigrant’s children, welfare, Medicaid, Food Stamps, personal injuries, auto accidents, social security fraud, and a host of other expenses.

Protection:
Congress has failed to protect and uphold their oath of office. Congress should be recalled by the American people to hold their feet to the fire for allowing profits to come before this nation’s protection.

The first duties of the congressmen are to protect and preserve the Constitution from all enemies, foreign and domestic. Last year there were 80 different nationalities of illegal immigrants were caught crossing the border from Mexico along with illegal immigrants. This undoubtedly is the greatest of security risk we have ever faced in our nation’s history. Yet, the Market Media Matrix has glossed over this major security flaw.

The first reasonable act of congress during a time of war should be to secure the borders. But in typical knee-jerk reaction they have created another useless government agency to help the airline industry.

Profits come first in America at the expense of protection. They have created the Homeland Security Agency and the TSA to protect Americans. These agencies provide very little protection against the massive open border policies which have been in place for the last 20 years. Congress has been complacently incompetent by incumbency. Congress’ complacency has been caused by voter’s incompetence repeatedly returning 95% of the politicians to office year-after-year. Through the help of the Market Media Matrix conditioning the average American by polarizing the population with stereotypical one-line sound bites. They include rich vs. poor, Republican vs. Democrat, White vs. Black, etc…grabs the attention of the average adult reading at a 5th grade level.

During last week’s protest march for illegal immigrants I witnessed the silent invasion of our country’s borders by a foreign nation. Seeing all the Mexican flags paraded throughout our streets should sound the Paul Revere Alarm. There is nothing more stirring to the American flag being raised on Iwo Jima by the marines who liberated the island from Japan during World War II. The spirit of those who fought World War II is gone today. The only worries of the Baby-boomer generation is how much profit they are going to make on their pension plans, homes, and their stock portfolios.
Congress should not make any new laws. They need to follow those already in place.

The first step is having the guts to close the borders, enforce the immigration laws, and build a secure border. The next step should be to determine who and where illegal immigrants are. Once that is determined these people should be added to the waiting list of those who are legally petitioning to enter the US.

Protection of our borders should come first over politics and profits for corporations.

God Bless

Doc

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