This is the last post of 2009 for this stock market for dummies blog and we have seen a very good year for anyone who bought stock this year. After a horrendous 2008, the market bounced back to settle in at over 10,000 once again. Will there be more good things to come next year?
As the job situation and economy is really not much better than it was a year ago, one has to wonder whether stocks have gotten ahead of themselves a bit. When and if people start to realize they are paying higher taxes, the unemployment rate is still around 10%, and the prospects for a quick turn around under Obama isn't happening, it seems the stock market may slow down and even turn back around.
Having gone up so much in 2009, it might be a good thing to become a cautious investor in 2010 just to be safe. The stock market moves on perception and if the public perception of our economy turns real negative again, the stock market will head right back down. Obama healthcare and all the other taxpayers money he has used for bailouts and pet projects cannot be making the situation any better.
The Christmas sales numbers aren't out yet but I have a feeling they will be average at best. Will be see another rash of companies declaring bankruptcy after those numbers come out like we have seen in years past? Christmas is such a big percentage of the retailer's year that a bad Christmas is enough to send many of them into bankurptcy in this economy.
The stock market gave a lot back last year of what it took the last two years but that doesn't mean the same will happen in 2010. You have to be smart with your money and not have too much of it in any one place. Those that have all their money in stocks are gambling to an extent and for them it truly is the stock market for dummies.
STOCK INVESTING IN 2010 - GREEN LIGHT AHEAD?
STOCK PICKING FOR DUMMIES (AND SMART PEOPLE TOO!)
Picking the right stocks is a challenge for any level of investor. It is almost made more difficult by the abundance of "professional analysts" that freely give their opinions on radio, television, the Internet, and magazine. Anywhere you look, you can find free stock tips and suggestions which make the stock market for dummies a difficult place to navigate.
So, where does one go for stock picks they can trust? There are two places and they are both free. The first is Morningstar and you can sign up for a free membership or a free 14 day trial to their premium membership. Obviously, you will be getting more with the Premium membership, but you don't have to sign up for that and can go with just the totally free one if you like. Either way, you will be getting stock news, stock analysis, and stock picks all for free.
Morningstar has been around since 1984 and they have put together one of the most comprehensive stock market sites on the Internet. They have more than 6 million registered users and they are often ranked with the best investing sites on the web. I like them because they have Pat Dorsey who makes stock recommendations that are always conservative in nature. He makes suggestions and analysis that I know has been well thought out and can be trusted based on his past record.
The second stock picking for dummies resource is Jubak Picks. Jim Jubak has just gone out on his own after writing for 12 years for MSN Money and his new site is much of the same but just more of it. He is another conservative stock picker who has consistently beaten the market year after year and his site is totally free. All his buys and sell are well explained for investors of any level and his picks are documented for anyone to see.
Learning the stock market is hard, especially if you have little time to keep up with the market and individual stocks. These two investment websites will at least give you a starting point and some interesting stock tips to learn. There are so many stocks out there that one has to have some sort of sifter that identifies companies that might be worth a look. The fact that both of these sites are free makes them that much better.
HOW TO FIND GOOD STOCKS TO BUY FOR DUMMIES
One of the most difficult things any stock market dummy or veteran has to do is to find good stocks to buy. Figuring out how to buy stocks for beginners is relatively easy and something you only have to learn once. Figuring out what stocks to buy, on the other hand, is a decision that has to be made over and over for the rest of your life.
There is no shortage of opinions on TV business shows and magazines from the stock gurus. Jim Cramer and his type on TV always have a list of stocks they say you should buy. In my experience, their choices are no better than the ones I can make myself by throwing a dart at a dart board. For instance, how many stock gurus warned us to pull all our money out of stocks when the Dow was in the 14,000's? Some experts might have been cautious but no one saw anything as bad as what really happened.
So, where can you find trusted opinions of what stocks to buy? One good choice seems to be Morningstar. Morningstar is one of the most respected names in independent investment research and opinion, as well as the recognized leader in stock and mutual fund analysis. Their mission is to create great investing products to help people reach their financial goals.
Consistently ranked among the best investment sites on the web, Morningstar offers a wide range of online portfolio management tools, financial data, unbiased stock and fund analysis, video commentary, and more.
There is one reason above all others that I like Morningstar. Pat Dorsey is a stock analyst who both writes and does video analysis of the stocks he deems worth investing in. As a conservative investor, I like to listen to those experts who are not afraid to say they do not like a stock's potential and that they recommend not investing in it. Pat Dorsey is someone who often says "no" to a stock and many of his picks are conservative in nature. By contrast, many of his colleagues seem to be positive about almost everything which really provides no value to any stock market beginner trying to come up with some good stock picks.
Morningstar and Pat Dorsey is one source that should be considered when putting together a list of best stocks to buy right now. Their website is comprehensive and will provide good value to both stock market beginners and stock market veterans alike. Of course, when you are trying to find stocks to buy you should do as much research on your own as possible and get several opinions as well.
