The buy and hold myth continues with part 2 of 6 explaining how long term investors are gambling on their family’s financial future. Barrack Obama urges “common sense” in financial regulations.
USPresident Barack Obama, speaking a year after the Lehman Brothers‘ collapse, warned against complacency as the financial crisis ebbs and said the US must have a new regime of “common-sense” regulations to avoid another market meltdown.”
I am urging those with 401k’s, 403b plans to use a little common sense when you are choosing a long term buy and hold strategy. During this Secular Bear market, lasting 18 years, you should take steps to protect any gains you have left.
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 plansDO 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.
Doc’s Harmonic stock Clock is intended for stocks, options, futures, commodities, and currencies trading. This site should be used for Educational and Training purposes only. No advice is given. No recommendations given. You are considered to be over 18 years old.
Doctraders Harmonic Stock Clock is based on technical market indicators which may predict short term and long term market trend reversals. Doctrader is not an investment adviser but has been involved in the markets since 1985. No system of trading or investing can prevent losses, you should do your own “due diligence” when determining the suitability of the information contained within this or other websites mentioned in this blog.
Use all Information on this site at your own risk.
Well, it’s been awhile since i have posted anything. I have posted this scenario of this market back in Jan 04 with your homework assignments. The first wave of a financial attack on a nation is it’s currency. The second wave, attacks it’s financial institutions with bond bombs. The third wave attack is that of it’s stock market. The first two attack waves have slowly materialized, far more slowly than I would have expected. The cyclical bull market has been given extended life thanks to the the “happy purple pills” everyone seams to be taking lately. As the financial house of cards begins to crumble, the talking head cheerleaders keep telling you “not to panic” as they scramble to slowly liquidate their holding into gold and silver. I was hoping Ben Bernanke would have had the wisdom of creating an inflationary bear market inside the secular bear market, however he choose to be a temporary hero for the stock market perma-bulls. Dr. Ben, aka, “Helicopter Ben” maybe flying to the rescue of wall Street by lowering interest rates at the peril of almost everyone else.
By lowering interest rates to save the credit markets, he has condemned the dollar to a “death spiral” against the Euro. Only by raising the prime interest rates can reverse the dollar’s slide to oblivion.
The perma-bulls say a declining dollar will mean more profits for companies who export to Europe and abroad. The perma-bulls fail to mention the U.S. is a net importer of goods and services, not a net exporter.
If you have ever travelled outside the U.S. you would soon realize that most people don’t like “American stuff” for a number of reasons, which i won’t go into now. If the dollar continues downward, other nations will impose tariffs and quotas on American products, creating a trade war. Usually after trade wars, the real wars commence, trading hot lead. If the American consumer does not show up for the holiday season, expect militant leaders to impose trade restrictions on American products. After all, Europe has the social concept of lifetime employment, no matter what the costs. The world has bought all of our “junk bonds” to finance our little stock market rally to record highs. Did you see the pictures of those in London, lining up around the banks to get their deposits? It was a picture out of the 1930’s, which is the direction I feel we are heading.
When the U.S. has a Triple Triple Down Day, then you will see panic in the eyes of the cheerleaders, and we, the Americans, will be the blame for the next global depression.
If you are concerned about your long term or short term stock holding, I will annotate your stock charts to give you a free “docsstockclock” check up. All you have to do is send me a picture of your favorite stocks, futures, or currency, and I will demonstrated the Harmonic Stock Clock Signal lines on my charts to let you compare with your charts. I will give you a technical view based on the Harmonic Stock Clock signal lines for educational and training purposes only. This free technical analysis of your charts is my way of saying happy Valentine’s Day to all the members of my yahoo group.
How to Send Me Your Charts
The best way to send me a picture of your charts is to do the following. Bring up your trading charts. Now, just click the “print screen” button on you keyboard, near the F12 or scroll lock button. Then open your window’s “paint” program”. If case you don’t know where the paint program is, it is under “Start_ Programs_ Accessories_ Paint. “ Then open the paint program’s window, then right click and “click paste”, the chart should appear in the paint program’s window. Then click file and save your chart as a “jpeg” or “gif” file format. Then just send me an email with the chart attached so that I can see what you are looking at when you are trading. I can then review the chart and make notes comparing your charts with the Harmonic Stock Clock chart’s signal lines. You will now have a second opinion based on the Harmonic Stock Clock signal lines.
It is really that simple to copy your long term or trading charts. I would recommend that you have trader’s log program to keep track of your trading habits. I use a program called ” I daily diary, which is a free program. You can then paste your own trading charts and comments for a daily diary of your trading record. By saving a diary of your trading, you will be able to spot repeated errors which may cost you serious money. I am looking forward to your charts.
Doc’s Harmonic Clock site is intended for Educational purposes only. The use of all charts, illustrations, and theories are based on the Harmonic Stock Clock Book. The purpose of this site is to use stocks, options, futures, commodities, ETF’s, and currencies for short and long term investments. Examples used by this site may not be suitable for all investors, consult with your tax advisor for any ramifications of short term gains and or losses. No recommendations are given. You are considered to be over 18 years old. Use all Information on this site at your own risk.
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