Today's Investing Fear

Today’s fear of the average investor with a 401K, 457 or other work place retirement account has money sitting on the sidelines.

  At today’s interest rates leaving money in a savings account or the savings part of the retirement account will not create enough interest to allow money to be made for a financially good retirement.

   The individual needs an understanding of how the stock market works and what you can do to create profits and limit loses. I suggest reading books.

   An easy read book with lots of good information is “The Truth about Money” The 4^th edition by Ric Edelman. You can get the book as a paperback or download to your reader.

  One of the reasons that people fear putting risk into the market, is because of the pull-backs the market has from time to time (corrections which are normal).

  Without risk, your portfolio will not grow, and that is what savings is. Savings is a place to keep your money, but a place where the value of your money will not increase. Similar to putting your money into your mattress.

  Currently there is a little too much uncertainty in the market. What will Greece and Europe do? Who will be our President, and how will that person run the country, and a big issue, what will happen to health care (ObamaCare).

    Talk about a “risk on trade” or a “risk off trade” by those on the radio, TV, and internet makes people fearful about the future. The fear comes from a lack of understanding about the market.  In the short term (days, months) things can look good and bad depending on the news we get. But investing is about the long term (years).

  Over years, the little bumps along the way have very little effect or no effect on our investment. Quality stocks continue to rise creating greater wealth for investors. Buying stocks that pay dividends…(dividends is like getting paid interest) while you wait for the stock value to rise is how to create wealth in today’s choppy market.

  Stay invested in quality stocks or Funds that have stocks paying dividends within the fund to create wealth.

  I’ll blog more about where to get the information you need, but in the meantime stay invested.

  Bruce Cortez

Twitter.com/StockMktTeacher

Apple Today

Apple (AAPL 627.49) is in correction territory. Yesterday’s close was $638.17, and as I write this the price is at $627.49.

  Today there is consolidation in the name. The stock has been vertical and you’re seeing some profit taking here. There are also some negative headlines out there with Foxconn Technology Group… Headline: Apple iPhone 5 delay: Foxconn denies worker unrest slows smartphone assembly…and some minor complaints about camera scratches, causing concerns to investors in the company.

 

  This stock tends to fade slightly following a product launch, but today’s correction goes beyond a “fade” or slight pullback.

 

  The broader concerns with the economy are also not helping Apple, and arguably this stock had dropped in the past on concerns of the iPhone5, on timing and other issues.

 

  The concern right now may be tied to the iPad Mini, and investors are waiting for Apple to send out the invite. When the invite is sent out, the stock should rally. The components are being sourced in Asia, and an announcement could be next week.

 

  Production is already occurring, so the launch of the product should be with a few weeks. A big delay is not expected in terms if the iPad Mini launch.

 

 Apple will report earnings later than usual at about October 25^th. This could be to set aside time for a special announcement.

 

 

  Apple specific fundamentals are still strong, so another cause of today’s price drop may be the stock is a leader in portfolios, and profits are being taking ahead of the election.

 

 With a ten percent drop in Apple’s price this would be a good time to get in… Remember buy on weakness and sell on strength.

 

  Daily stock market updates. Follow me at http://www.Twitter.com/StockMktTeacher