Stocks Vs Bonds - Which is a Better Investment?
Recently since the stock market has turned around a bit, we have been hearing the experts say that Bonds may be a better buy than stocks right now. I have to say that I respectfully disagree with their thinking. Ok, so Stocks have gone up over 30% since they bottomed back in March, however, Bonds are still paying extremely low interest rates. Here is my take on each:
Stocks
The stock market is still undervalued in my opinion, especially if this recession has turned around, and will likely be over with come the 3rd quarter. Business's are stripped down, and much more efficient than they were just 3-4 months ago. This means that once the economy completes it's turn around, many companies will have higher profit margins. There are dozens of solid companies with safe dividends paying as much as 5-7% returns. This is not to mention the fact that the stocks themselves will increase in value most likely.
Bonds
A ten year treasury bond is currently paying 3.6%. With inflation expected to rise, likely to the 5-6% range sometime by next year, these bonds will actually be losing money in a real sense. If inflation goes up only mildly to a 4% rate, than it is likely that the same 10 year treasury released next year will have a 6-7% coupon. Why buy bonds now, when you can wait till they yield more? Bond Forum
Penny Stock Trading System
Have you been looking for a good penny stock trading system? Well, I have sure have been! I have been trading penny stocks for years now and I have successfully developed many techniques that allow me to invest and profit on a regular basis. It was not easy and it took a lot of testing and failure, but I now have a way to invest in penny stocks in a safe and secure way. I am going to share a technique with you today that has worked for me time and time again!
The technique I am speaking of is called trend investing. It is very simple once you fully understand it and what you should watch out for. The whole technique is based off of finding trends in a stock price. The best way to do this is to bring up a chart that displays the 2 or more year history of its price. After the chart is up, you can take a look for a trend.
A trend can show up in many ways. A stock might increase for a few months only to drop back down to where it started. It might be the opposite. What is important is that, when you find a trend, you write it down. Take note of the stock and when the best time to invest is. Save the chart for future reference and start looking for another trend.
The real power of this strategy shows up when you have 20 or so trends documented. With 20 stocks just waiting to be invested in at the right time, you will always have an easy and safe investment waiting for you. Sure, trends might be a little off sometimes, but I have been able to consistently invest based on them for a nice profit for years! Penny Stock Trading System.