Expectations

The market has fallen three of the last four days with a sharp decline yesterday. This morning it is showing more weakness. Last week and the week before the market was up but without the volatility of the recent down days. When marketscorrect it is usually much faster than when they rally. That is the norm and the norm appears to be what the market is reverting to. If that is true we should expect a normal correction at some point which would be more in the area of 10%. The largest correction we have had since last March’s low is 7.5%. There were a number of smaller 3 to 5% corrections in 2009, a year in which the market was very strong. Normal is good. If the market does revert to its mean we should see a year in which the market returns will be 10% in the indexes. That is not bad and over time that will result in a calming effect on investors and traders. Individual investors will do better or worse depending on their stock picking skills. Of course on a day to day basis it’s not nearly as calming. Try to take the long view. Overall, things are getting better. This is not to say there won’t be problems;there are always problems. Good Trading Steve Peasley

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Video Market Commentary – January 2010, Issue 4

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Learn From the World’s Great Investors

Today’s Stocks & Topics: Bond Funds, (RINO) Rino International Corporati, (BRK.B) Berkshire Hathaway Inc., (CINF) Cincinnati Financial Corp., (ESEA) Euroseas Ltd., (ILMN) Illumina Inc., B Shares, (GS) Goldman Sachs Group Inc., (LYG) Lloyds Banking Group PLC

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6 misconceptions about Dividends

Today’s Stocks & Topics: (EBAY) eBay Inc., The Stock Market & Politics, (VGR) Vector Group Ltd., (WES) Western Gas Partners LP, (GFIG) GFI Group Inc., (AUY) Yamana Gold Inc., (PFSW) PFSweb Inc., (KONG) KongZhong Corp., (HUM) Humana Inc.

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Investment Scams

The Internet revolution has spread to almost every household in the United States and it is growing fast in the rest of the world. The average citizen can now tap into information that at one time was reserved only for the privileged few. Nowhere is that more true than in the investment world.
The types of scams are the same as they have always been only now we have the expanded version and with the power of the internet the marketing of these plans has gotten far easier and cheaper. Therefore, it is now much more important to learn how to recognize and avoid the scammers.

A common form of internet investment manipulation is the use of bulletin boards and blogs. The scammers enter various bulletin boards or participate in blogs touting the very same stocks in their e-mails and Newsletters. In fact it makes sense as a strategy. Often the fraudulent bloggers quote the fraudulent Newsletters. This is in the best tradition of a legitimate multi-prong advertisement campaign. These guys are good. They repeat the story on as many blogs and bulletin boards as they can using different names. The internet makes it easy to hide who the scammers really are and as professional scammers they will sound very convincing in the blogs and bulletin boards in which they post their opinions. How do they make money as they try to push the public in to buying these stocks?

It’s an old story. It’s called ‘pump and dump’. They own shares of the companies they are ‘pumping’ to you as great opportunities. While they pump up the price they simply ‘dump’ or sell their shares at much higher prices than they obtained them. Usually we are talking penny stocks where pennies per share means huge percentage movements. If it goes from ten to thirty cents, that is 200%.

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